Exodus Limousine Company has $1,000 par value bonds outstanding at 12 percent interest. The bonds will mature in 40 years with annual payments.

Compute the current price of the bonds if the current yield to maturity is: (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answers to 2 decimal places.)

Price of the bond

a. 7 percent

$

b. 17 percent

$

Applied Software has a $1,000 par value bond outstanding that pays 20 percent interest with annual payments. The current yield to maturity on such bonds in the market is 9 percent.

Compute the price of the bonds for these maturity dates: (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answers to 2 decimal places.)

	Price of the bond
a. 30 years	$
b. 18 years	$
c. 4 years	$

The treasurer of Brandon Blue Sox is seeking a $23,000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 15 percent and there is a 20 percent compensating balance requirement. The treasurer always keeps a minimum of $1,800 in the firms chequing account. These funds could count toward meeting any compensating balance requirements.

What is the annual rate of interest on this loan? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Annual rate of interest %