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 pays 8 percent annual interest and has 17 years remaining to maturity. The current yield to maturity on similar bonds is 10 percent Use Appendix 8 and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods o. What is the current price of the bonds? (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.) Current price of the bond 70483 b. By what percent will the price of the bonds increase between now and maturity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Price increases by 5 Appendix & Present value of $1, PV, PV-2167 PVFV 8X Porlod 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 12 18 19 20 25 30 40 18 0990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0879 0.870 0.861 0.852 0.844 0.836 0828 0.820 0.780 0.712 0.672 0.608 25 0.980 0961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0820 0.804 0.788 0.773 0.758 0.743 0.728 0714 0.700 0.686 0.572 0610 0552 0452 0372 23% 0.971 0.943 0.915 0.888 0.863 0.837 0.812 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0.587 0570 0.554 0.478 0.412 0.307 022 4% 0.962 0.925 0.89 0.855 0.822 0.790 0.760 0.731 0.703 0676 0.650 0.625 0.601 0.577 0.555 0.534 0513 0.494 0.475 0.456 0.375 0.308 0208 0.141 5% 0952 0.907 0.864 0.823 0.784 0.746 0.711 0677 0.645 0.614 0.585 0.567 0.530 OSOS 0481 0.458 0436 0.416 0.396 0.377 0.296 0.231 0.142 0082 Percent 6% 7% 0.943 0.935 0.890 0.873 0.840 0816 0.792 0.763 0.747 0.713 0.705 0666 0.665 0.623 0.627 0.582 0.592 0.544 0558 0.508 0.527 0.475 0.497 0.444 0.469 0.415 0.442 0.388 0.412 0.362 0.294 0.399 0.371 0.317 0.350 0.296 0.331 0277 0.312 0.258 0.223 0.184 0.174 0.131 0.097 0067 0054 0034 0926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.358 0.340 0315 0.292 0.270 0.250 6232 0.215 0.146 0.099 0.046 0.021 9% 0.917 0842 0.772 0.708 0.650 0.596 0547 0.502 0.460 0.422 0.388 0.356 0.326 0.299 0.275 0.252 0231 0.212 0194 0.178 0.116 0.075 0022 0013 10% 0.909 0.826 0.751 0.683 0.621 0.564 0513 0467 0.424 0.386 0.350 0319 0.290 0.262 0239 0.218 0.198 0.180 0.164 0.149 0.092 0.05% 0022 0000 11% 0.901 0.812 0.731 0.659 0.593 0.535 0.482 0434 0.391 0.352 0.317 0286 0.258 0.232 0.209 0.188 0.170 0.152 0 138 0.124 0.074 0.014 0.015 0.005 12% 0.893 0.797 0.712 0.636 0567 0507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.163 0.146 0.130 0.116 0.104 0.050 0.033 0.011 0.003 Appendix D Present value of an annuity of $1, PA PV = 1 [ Period 1 2 2% 0.980 1942 3 4 5 6 7 9 10 11 12 12 14 15 16 17 18 19 20 25 30 40 50 TG 0.990 1970 2.941 3.902 4853 5.795 6.728 7,652 3.566 9471 10.368 11256 12.124 13004 12865 14.718 15562 1698 17226 18.046 22.023 25808 32 25 19.195 2884 3.808 4.213 5.601 6.472 7.325 8.162 8.983 9.787 10575 11.348 12.106 12049 12578 14292 14.992 15678 16351 19.23 22396 27156 31424 0971 1.913 2.829 3.717 4580 5.417 6230 7020 7.786 8530 9.253 9954 10 685 11 2016 11938 12561 13.105 122754 14.324 1872 17 418 19.600 22.115 25 70 4% 0.962 1896 2775 3.620 4452 5.242 6002 6.730 7435 8.111 8.760 9.35 9.986 10563 11.118 11.053 12 166 12 000 13. 134 13590 15.622 17.292 19.293 2148 SX 0.952 1.859 2.723 3,546 4.320 52076 5786 6.462 7. 108 2.722 106 8863 9.394 9099 10.100 10. 11274 11.690 12005 12.462 14.094 15 322 17.159 T8 256 Percent ox 2% 0.943 0935 1.822 1808 2673 2624 2465 3.387 4212 4100 4.912 4.767 5.582 5.389 5.210 $1971 6.802 6.515 7360 7024 7887 7.499 8.384 7.943 1852 1358 1205 8.745 9.212 0.100 10.106 9447 10.472 9.763 10.820 10.000 11.158 10.336 11.470 10.594 12.781 11654 13.765 12400 15.046 13332 15.762 13801 84 0.926 1.783 2577 2312 3.993 4.623 5.206 5.747 6247 6.710 7139 7536 7.9014 8244 8.559 B.851 9.122 9.272 07604 9.81B 10.675 11 258 11.925 12233 9% 0912 1.759 2531 3.740 3890 4.486 5033 5535 5.995 6.418 6.805 7.161 7.487 7786 8061 8.312 8.544 8.756 R050 2120 9.822 10.214 10.257 102 102 11 124 01909 0.901 0.893 1.736 1.713 1.600 2487 2414 2.402 3.170 3.102 3.037 3.791 3.696 3605 4.355 4.231 4111 4 BGB 4712 4564 5.335 5.146 4.968 5759 5.537 5.228 6.145 5 889 5.650 6.495 6 207 5.938 6,814 6492 6.194 7.103 6.750 6424 7367 6.982 6.628 7.606 7191 6811 7824 7379 6974 8022 7549 120 3.201 7702 7.250 8365 2.800 7366 8.514 7.963 2,469 9027 R422 7843 9427 604 9.720 R951 8.244 0915 9042 8300 8055