eBook Problem 13-05 Charlotte's Clothing issued a 5 percent bond with a maturity date of 17 years. Six years have passed and the bond is selling for $785. Assume that the bond pays interes a. What is the current yield? Round your answer to two decimal places. 6.37 % b. What is the yield to maturity? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number. 8 % C. If four years later the yield to maturity is 8 percent, what will be the price of the bond? Use Appendix B and Appendix D to answer the question. Round your answer $ 28 lest factors for the Present Value of One Dollar Time Period (e.g., year 59 6 BI 109 20% 24% 28 NM in .78 .610 2 3 4 5 294 3% .980 971 962 961 943 925 1942 .915 889 924 .889 855 .906 863 822 990 .980 971 961 .951 1952 .907 .864 .823 .784 .943 890 840 1792 .747 995 878 816 1763 713 1926 857 1794 0735 681 917 842 772 708 1650L 909 826 751 683 62 1893 1797 1.712 1636 0567 1877 769 1675 592 519 .870 .756 .658 572 497 18% .847 .718 .609 1516 437 862 743 1641 .552 476 .833 694 1579 482 402 806 .650 .524 423 341 477 377 .29 NW 942 1933 on va .923 .888 838 .871 813 .853 789 .837 .766 .820 .744 1.790 1746 .705 .760 .711 .665 .731 .677 .627 .703 645 592 .676 614 558 .666 .623 582 544 .508 630 583 540 .500 463 596 1547 502 460 422 1564 3513 467 1424 386 1507 452 404 361 322 456 400 .351 308 .270 432 .376 327 .284 .247 410 354 305 263 .227 1370 .314 .266 .226 .191 335 279 233 194 .162 275 222 -179 144 .116 .22 178 .139 .108 .08 1914 .905 10 11 12 13 14 15 1896 887 879 .870 .861 .804 .788 .773 .758 .743 .722 .701 .681 .661 .642 .650 .625 .601 .577 .555 .585 557 530 505 481 527 497 469 442 417 475 444 415 388 362 429 397 368 340 315 1388 356 326 299 .275 350 319 1290 .263 .239 .287 .257 .229 205 .183 .237 208 .182 .160 .140 .215 .187 .163 .141 .123 .195 .168 145 125 .108 .162 .137 .116 .099 .084 .135 112 1.099 078 065 094 076 _061 .049 040 .06 05 .04 03 .02 16 17 18 19 20 .853 .844 .836 .828 820 728 -714 .700 .686 .673 .623 .605 .587 1570 .554 .534 .513 494 .475 .456 .458 436 416 396 377 394 .371 350 .331 312 339 317 .296 .276 258 292 .270 .250 .232 215 .252 231 .212 .194 .178 218 .198 .180 .164 .149 .163 .123 .107 .093 .146 .108 .093 .080 .130 095 .081 .069 .116 083 .070 .060 .104 073 061 .051 .071 .060 051 043 1037 .054 045 038 031 026 .032 .026 .021 .017 2014 .019 2015 2012 .00 .00 024 .030 .016 010 2005 2002 .092 .059 .038 .116 233 .184 .146 25 .780 .610 .478 .375 295 00 2004 .002 .015 012 .007 .033 .020 .057 1.099 .075 .742 552 .231 .131 412 .174 30 .308 Interest Factors for the Present Value of an Annuity of One Dollar Time Period 1337 2 uwN 2% 391 496 GG 046 0.990 0.980 0.971 0.962 0.952 0.943 0.985 0.926 1.970 1.942 1.913 1.886 1.859 1833 1.808 1.78B 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 12% 81694 32% 35% 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.759 1.736 1.690 1.647 1605 1.566 1.528 1.457 1.392 1.332 1.276 2.531 2.487 2.402 2.322 2.246 2.174 2.706 1.981 1.868 1766 1674 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 4 5 6 7 Uno 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 31566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7.722 7360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 10 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 4.533 31912 3.427 3.040 2.727 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.617 3.962 3.459 3.061 2.740 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 17 18. 19 20 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.162 4.700 4.003 3.508 3.088 2.758 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 6.373 5.749 5.222 4.725 41059 3.518 3.097 2.763 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 5.818 5.273 4.812 4080 3.529 2.104 2.767 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 41097 31539 3.109 2.770 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.873 18.765 12.409 11,258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778