Interest Factors for the Present Value of an Annuity of One Dollar Time Period (e.g. 1% 2% 3% 4% 5% 6% 7% 8% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 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 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1.674 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 6 8 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 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 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 3.682 3.269 2.930 2.650 9 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 3.912 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 4.611 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 7.606 6.811 6.142 .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 4.730 4.003 3.503 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 4.775 4.059 3.518 3.097 2.763 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 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 4.097 3.539 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 15.373 13.765 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 Interest Factors for the Present Value of One Dollar Time Period (e.g. year) 1% .990 980 971 .961 951 2% 980 961 942 924 906 3% 971 943 915 889 863 4% 5% 962 952 925907 889 864 855 823 822 784 6% 943 890 840 792 747 7% 935 873 .816 763 713 8% 926 .857 794 735 681 9% 917 842 772 708 650 10% 909 826 751 .683 621 12% 14% .893 877 797 769 712 .675 636 592 567 519 15% 870 .756 .658 572 497 16% 862 743 .641 552 476 18% 20% 24% 847 833 806 718 .694 .650 .609 579 524 516 482 423 437402 341 28% 781 610 477 373 .291 942 933 923 914 905 888 871 853 837 820 .838 813 789 766 744 790 760 731 703 676 746 711 .677 645 614 705 665 .627 .592 .558 .666 623 582 544 508 .630 583 540 500 463 596 547 502 460 422 564 513 467 424 386 507 452 404 361 322 456 400 351 .308 270 432 .376 .327 284 247 410 354 .305 263 227 370 314 .266 .226 191 335 279 233 .194 .162 275 222 179 144 .116 .227 .178 .139 .108 .085 z oooo bne ono wa wown- 475 444 429 397 350 319 .896 .887 .879 .870 .861 804 788 773 758 743 722 701 .681 .661 .642 .650 .625 .601 577 555 585 557 530 505 481 527 497 469 442 388 356 326 299 275 287237 208 .182 205 .160 .183 .140 215 .187 .163 .141 .123 195 .168 .145 .125 .108 162 .137 116 .099 084 135 .112 .093 078 065 094 076 061 .049 .040 .066 052 .040 032 025 388 362 340 315 263 239 17 394 371 .853 .844 .836 .828 .820 728 714 700 .686 .673 623 605 587 570 554 534 513 494 475 456 458 436 416 396 377 339 317 .296 276 258 350 292 270 250 232 215 252 231 212 194 178 218 198 180 164 149 .163 146 130 116 104 .123 108 .095 .083 .073 .107 093 .081 .070 .061 .093 .080 069 060 .051 071 .060 .051 .043 .037 .054 .045 038 031 .026 .032 .026 .021 .019 .015 .012 .009 .007 .331 312 .017 .014 780 610 478 375 295 233.184 146 116 092 059 038 030 024 016 .010 .005 .002 30 742 552 .412 308 231 .174 .131 099 075 057 033 020 015 012 .007.004 002 001 Problem 16-04 A $1,000 bond has a 4 percent coupon and currently sells for $750. The bond matures after six years. What is the bond's anticipated yield? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number. %
