just number 1

Part 4 The Capital Budgeting Process a. $2.40 0.13 - 0.05 $2.40 0.08 $30.00 b. $2.40 0.15 $2.40 0.10 $24.00 -0.05 c. Po $2.70 0.12 - 0.06 $2.70 0.06 $45.00 All Problems are available in Homework Manager. Please see the preface for more information. a (For the first 19 bond problems, assume interest payments are on an annual basis.) 1. Burns Fire and Casualty Company has $1,000 par value bonds outstanding at 11 percent interest. The bonds will mature in 20 years. Compute the current price of the bonds if the present yield to maturity is: a. 6 percent. b. 8 percent. c. 12 percent. 2. Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is: 7 percent b. 10 percent. C. 13 percent. 3. Exodus Limousine Company has $1,000 par value bonds outstanding at 10 per cent interest. The bonds will mature in 50 years. Compute the current price of bonds if the percent yield to maturity is: a. 5 percent b. 15 percent. 4. Referring back to problem 3, part b, what percent of the total bond value does the repayment of principal represent? 5. Harrison Ford Auto Company has a $1,000 par value bond outstanding that 11 percent interest. The current yield to maturity on each bond in the marke percent. Compute the price of these bonds for these maturity dates: a. 30 years. b. 15 years