eBook Problem 13-10 You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 6 percent Term to maturity: 17 years Sinking fund: 3 percent of outstanding bonds retired annually, the balance at maturity . If you buy the bond today at its face amount and interest rates rise to 11 percent after four years have passed, what is your capital gain or loss? Assume that the bond pays Interest annually. Use Appendix Band Appendix D to answer the question. Use a minus sign to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar $ b. If you hold the bond 17 years, what do you receive at maturity? c. What is the bond's current yield as of right now? Round your answer to the nearest whole number d. Given your price in a what is the yield at maturity? Round your answer to the nearest whole number .. What proportion of the total debt issues retired by the sinking fund? Round your answer to the nearest whole number. 1. If the final payment to retire this bond is $900,000, how much must the firm invest annually to accumulate this sum the firm is able to earn 6 percent on the invested funds? Use Appendix Cto answer the question. Round your answer to the nearest dollar wwww m mmum Interest Factors for the Present Value of One Dollar 114 * mm m w mmm % w= , EHBsc S - , Interest Factors for the Present Value of an Annuity of One Dollar Time Period . year 1 2 -NU 4 5 15 2% 3 ox 7% 9 10% 12% 14% 16% 20% 20% 28% 2210% 0.990 0,980 0.971 0.962 0.952 0.943 0935 0.926 0917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.970 1942 1913 1.886 1.850 1.833 1.808 1.782 1.759 1736 1690 1647 1.605 1.566 1.528 1.457 1.392 1332 1.275 2941 2884 2.829 2.775 2.723 2.673 2.624 2.577 2531 2.487 2.402 2.322 2.246 2.174 2.106 1981 1.868 1766 1674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 2.312 2.240 3170 3037 2914 2.798 2690 2.589 2404 2.241 2.096 1966 4.853 4.713 4.580 4.452 4.329 4 212 4.100 3.993 3.890 3.791 2605 3.433 3.274 3.127 2.991 2.745 2.522 2.345 2.181 5.795 5.601 5417 5.242 5.076 4917 4.766 4623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.750 2.534 2399 6.728 6.472 6230 6.002 5.786 5.582 5.389 5.206 5.033 4868 4564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7652 7.325 70206.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4639 4.346 4.078 3.837 3.421 3.076 2,786 2.500 8.566 8.162 7.786 7435 7.108 6.802 6515 6.247 5.985 5.750 5.328 4.946 4.607 4 303 4031 3566 3.184 2.868 2,603 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4,833 4.494 4,193 3682 3.269 2.930 2.650 6 7 3 9 10 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 12 11.255 10.575 9.954 9.385 8.863 8 384 7943 7536 7161 6814 6.194 5,660 5.197 4.793 4.439 3.851 3.187 3013 2.708 13 12.134 11.348 10,635 9.986 9.394 8.534 8.358 7904 7.487 7103 6.424 5 842 5.342 4910 4.533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 82447.786 7.367 6.628 6.002 5.468 5.008 4.611 3962 3.459 2061 2.700 15 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 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 0312 7.824 6.97 6.265 5.669 5.162 4.720 4.003 1501 308 2.758 17 15.562 14.292 13.166 12.166 11274 10.477 9.763 9.1228544 8.002 7.120 6.7 5.749 5.222 4775 4.059 1518 1097 2.763 18 16.398 14.992 17.754 12.659 11690 10.828 10.050 937 8.756 8.201 7250 6.467 5.818 5.27 4812 4080 3.529 2.104 2.767 19 17.226 15.678 14.324 12.134 12.085 11.158 10.376 9.604 8.950 8.365 7366 6.550 5.877 5.316 4844 4097 259 1.109 2.770 2018.046 16 351 14.677 13590 12.462 11.470 10 594 9818 9.128 8.514 7460 6623 5929 5.353 4.870 4.110 1.546 2111 2777 25 22.023 19.522 17413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7843 6.873 6097 5467 4948 4.147 3564 3.122 2.776 3025 808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.057.003 6.177 5.517 4.979416015692174 2778 =
