Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 18 percent annual interest. The current yield to maturity on such bonds in the market is 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Compute the price of the bonds for these maturity dates: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)

\begin{tabular}{|l|l|l|} \hline & & Bond Price \\ \hline a. & 25 years & \\ \hline b. & 18 years & \\ \hline c. & 1 year & \\ \hline \end{tabular} Appendix B Present value of $1,PVIFPV=FV[(1+i)n1] Appendix B (concluded) Present value of $1 Appendix D Present value of an annuity of $1,PVFAPVA=A[11i)n1] Appendix D (concluded) Present value of an annuity of $1