On January 1, 20X1, Fred purchased a corporate bond with a face value of $30,000 from the secondary market at a premium. The bond has a coupon rate of 8 percent and matures in five years. The market rate of the bond is a 6 percent annual before-tax return compounded semiannually. If Fred is trying to minimize interest income, what is the least amount of interest income Fred may report on his 20X1 tax return? Present value of $1. Present value of annuity $1. (Do not round Intermediate calculations. Round your final answer to two decimal places.) PVA (1-1/(1+0)/i 1.0% 1 0.99010 15% 2.0% 2.5% 30% 35% 0.98522 0.98039 0.97561 097087 4.0% 45% 0.96618 0.96154 0.95694 5.8% 0.95238 5.5% 60% 2 1.97040 1.95588 1.94156 3 2.94099 2.91220 1.92742 191347 2.88388 4 3.90197 3.85438 5. 6 7 6.72819 8 7.65168 7.32548 9 8.56602 10 9.47130 11 10.36763 10.07112 9.78685 8.75206 9.51421 12 11.25508 10.90751 10.57534 10.25776 9.95400 9.66333 13 12.13374 11.73153 11 34837 10.98319 10.63496 10.30274 9.98565 17 15.56225 14.90765 14.29187 18 9.68285 7.90378 9.58965 9.29498 8.74547 8.24424 14 13.00370 12.54338 12.10625 11.69091 11.29607 10.92052 10.56312 10.22283 9.89864 9.30791 8.55948 15 13.86505 13.34323 12.84926 12.38138 11.93794 11.51741 11.11839 10.73955 10.37966 10.03758 9.71225 8851371 16 14.71787 14.13126 13.57771 13.05500 12.56110 12.09412 11.65230 11.23402 10.83777 10 46216 10.10590 9.44665 13.71220 13.16612 12.65132 12.16567 11.70719 11.27407 10.86461 30 47726 9.76322 9.12164 16.39827 15.67256 14.99203 14.35336 13.75351 13.18968 12.65930 12.15999 11.58959 1124607 10.82760 1005909 9.37189 17.22601 16.42617 15.67846 14.97889 14.32380 13.70984 13.13394 12.59329 12 08532 11 60765 11.15812 10.33560 9.60360 9.12855 8.51356 7.96333 746944 436958 20 18.04555 17.16864 16.35143 15.58916 14.87747 14.21240 13.59033 13.00794 12 46221 11.95008 11.46992 10.59401 21 18.85698 17.90014 17.01121 16.18455 15.41502 14.69797 14.02916 13.40472 12.82115 12.27524 11.76408 10.83553 10.01680 9.29224 8.64869 8.07507 756200 439132 14.09394 1341393 12.78336 11.65358 10.57478 9.82258 907704 842174 7.84314 4.94759 25 22 02316 20.71961 19.52346 18.42438 17.41315 1648151 15.62208 14.82821 30 25 80771 24.01584 22.39646 20.93029 19.60044 18.39205 1729203 16.28889 15.37245 1453375 13.76483 12.40904 1125778 10.27365 942691 8.69379 805518 4.9784 40 32.83469 29.91585 27.35548 25.10278 23.11477 21.35507 19.79277 18.40158 17.15909 1604612 15 04630 13.33171 11.92461 10.75736 9.77905 95105 8.24378 499660 19 981815 091743 0.90909 0.90090 0.39286 083333 1.89969 1.88609 1.87267 1.85941 184632 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 169005 152778 285602 2.82861 2.80164 2.77509 2.74896 2.72325 2.69793 2.67301 2.62432 2.57710 2.53129 248685 244371 240183 2.10648 3.80773 3.76197 3.71710 3.67308 3.62990 3.58753 3.54595 3.50515 3.46511 338721 331213 3.23972 3.16987 3.10245 3.03735 2.58873 4.85343 4.78264 4.71346 4.64583 4.57971 4.51505 445182 4.38998 4.32948 4.27028 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 360478 2.99061 5.79548 5.69719 5.60143 5.50813 541719 5.32855 5.24214 5.15787 5.07569 4.99553 4.91732 4.76654 4.62288 4.48592 6.59821 6.47199 6.34939 6.23028 6.11454 6.00205 5.89270 5.78637 5.68297 5.58238 5.38929 5.20637 5.03295 748593 7.17014 7.01969 6.87396 6.73274 6.59589 646321 633457 6.20979 5.97130 5.74664 5.53482 8.36052 8.16224 7.97087 7.78611 7.60769 743533 725879 7.10782 6.95220 6.80169 6.24689 6.51523 599525 9.22218 8.53020 8.98259 8.31661 6.71008 8.11090 7.91272 7.72173 7.53763 7.36009 7.02358 9.25262 9.00155 8.76048 8.52892 7.88687 8.30641 809254 749867 713896 8.86325 9.38507 9.11858 8.38384 8.61852 7.94269 7.53608 9.39357 8.85268 9.11708 8.35765 0.94787 70% 0.94340 0.93458 80% 0.92593 90% 100% 11.0% 120% 20.0% 4.35526 4.23054 4.11141 3.32551 4.86842 4.71220 456376 3.60459 5.33493 5.14612 4.96764 3.83716 5.75900 553705 5.32825 4.03097 6.41766 6.14457 588923 5.65022 4.19247 6.80519 6.49506 6.20652 5.93770 4.32706 7.16073 681369 6.49236 6.19437 443922 7.48690 7.10336 6.74987 642355 453268 7.78615 736669 6.98187 6.62817 461057 806069 760608 7.19087 6.81086 4.67547 8.31256 7.82371 737916 6.97399 4.72956 8.54363 02155 754879 7.11963 4.7746) 8.75563 8.20141 7.70162 724967 4.81219 8.95011 8.36492 783929 7.36578 4.84350 PV = $1/(1+)" 2.0% n/i 1.0% 15% 2.5% 3.0% 35% 4.0% 45% 50% 5.5% 60% 70% 8.0% 90% 10.0% 11.0% 120% 20.0% 1 0.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94787 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.83333 2 0.98030 0.97066 0.96117 0.95181 0.94260 0.93351 0.92456 0.91573 0.90703 0.89845 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.69444 3 0.97059 0.95632 0.94232 0.92860 0.91514 0.90194 0.88900 0.87630 0.86384 0.85161 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.57870 4 0.96098 0.94218 0.92385 0.90595 0.88849 0.87144 0.85480 0.83856 0.82270 0.80722 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 048225 5 0.95147 0.92826 0.90573 0.88385 0.86261 0.84197 0.82193 0.80245 0.78353 0.76513 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.40188 6 0.94205 0.91454 0.88797 0.86230 0.83748 0.81350 0.79031 0.76790 0.74622 0.72525 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.33490 7 0.93272 0.90103 0.87056 0.84127 0.81309 0.78599 0.75992 0.73483 0.71068 0.68744 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.27908 8 0.92348 0.88771 0.85349 0.82075 0.78941 0.75941 0.73069 0.70319 0.67684 0.65160 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.23257 9 0.91434 0.87459 0.83676 0.80073 0.76642 0.73373 0.70259 0.67290 0.64461 0.61763 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.19381 10 0.90529 0.86167 0.82035 0.78120 0.74409 0.70892 0.67556 0.64393 0.61391 0.58543 0.55839 0.50835 0.46319 042241 0.38554 0.35218 032197 0.16151 11 0.89632 0.84893 0.80426 0.76214 0.72242 0.68495 0.64958 0.61620 0.58468 0.55491 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.13459) 12 0.88745 0.83639 0.78849 0.74356 0.70138 0.66178 0.62460 0.58966 0.55684 0.52598 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.11216 13 0.87866 0.82403 0.77303 0.72542 0.68095 0.63940 0.60057 0.56427 0.53032 0.49856 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.09346 14 0.86996 0.81185 0.75788 0,70773 0.66112 0.61778 0.57748 0.53997 0.50507 047257 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.07789 15 0.86135 0.79985 0.74301 0.69047 0.64186 0.59689 0.55526 0.51672 0.48102 0.44793 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.06491 16 0.85282 0.78803 0.72845 0.67362 0.62317 0.57671 0.53391 0.49447 0.45811 0.42458 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.05409 17 0.84438 0.77639 0.71416 0.65720 0.60502 0.55720 0.51337 0.47318 043630 0.40245 0.37136 0.31657 0.27027 0.23107 0.19784 0.16963 0.14564 0.04507 18 0.83602 0.76491 0.70016 0.64117 0.58739 0.53836 0.49363 0.45280 0.41552 0.38147 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.03756 19 0.82774 0.75361 0.68643 0.62553 0.57029 0.52016 0.47464 0.43330 0.39573 0.36158 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.03130 20 0.81954 0.74247 0.67297 0.61027 0.55368 0.50257 0.45639 0.41464 0.37689 0.34273 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.02608 21 0.81143 0.73150 0.65978 0.59539 0.53755 0.48557 0.43883 0.39679 0.35894 0.32486 0.29416 0.24151 0.19866 0.16370 0.13513 0.11174 0.09256 0.02174 24 0.78757 0.69954 0.62172 0.55288 0.49193 0.43796 0.39012 0.34770 0.31007 0.27666 0.24698 0.19715 0.15770 0.12640 0.10153 0.08170 0.06588 0.01258 25 0.77977 0.68921 0.60953 0.53939 0.47761 0.42315 0.37512 0.33273 0.29530 0.26223 0.23300 0.18425 0.14602 0.11597 0.09230 0.07361 0.05882 0.01048 28 0.75684 0.65910 0.57437 0.50088 0.43708 0.38165 0.33348 0.29157 0.25509 0.22332 0.19563 0.15040 0.11591 0.08955 0.06934 0.05382 0.04187 0.00607 29 0.74934 0.64936 0.56311 0.48866 0.42435 0.36875 0.32065 0.27902 0.24295 0.21168 0.18456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03738 0.00506 30 0.74192 0.63976 0.55207 0.47674 0.41199 0.35628 0.30832 0.26700 0.23138 0.20054 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.00421 31 0.73458 0.63031 0.54125 0.46511 0.39999 0.34423 0.29646 0.25550 0,22036 0.19018 0.16425 0.12277 0.09202 0.06915 0.05210 0.03935 0.02980 0.00351 40 0.67165 0.55126 0.45289 0.37243 0.30656 0.25257 0.20829 0.17193 0.14205 0.11746 0.09722 0.06678 0.04603 0.03184 0.02209 0.01538 0.01075 0.00068 MacBook Pro