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Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well below par value. He has his eye on

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Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well below par value. He has his eye on a bond issued by the Leisure Time Corporation. The $1,000 par value bond with semiannual payments has 6 percent annual interest and has 15 years remaining to maturity. The current yield to maturity on similar bonds is 12 percent. (Use a Financial calculator to arrive at the answers. Do not round Intermediate calculations. Round the final answers to 2 decimal places.) a. What is the current price of the bonds? Current price $ b. By what percent will the price of the bonds increase between now and maturity? Price increases by % c. What is the annual compound rate of growth in the value of the bonds? Annual compound rate %

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