OS 10-19A (Algo) Computing bond price C2 Compute the selling price of 8%, 10-year bonds with a par value of $270,000 and semiannual interest payments. The annual market rate for these bonds is 10% Use present value Table B.1 and Table 8.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations.) Table Value Present Value Cash Flow $270,000 par (maturity) value $10,800 interest payment Price of Bond Mt.ch Motoren Medicine Table B.1. Present Value of 1 p=1/(1+1" +) 19 69 OZOR 1 Z CONGO XEO DENSO $ WOSO KESTO SESYO PORCO OCSO KOPSO OIOSO o IPOVO CHOSO 96990 CHOSO SNED SSSRO 9NO Rate Periods 34 45 55 79 95 155 Periods 0.9901 0.9804 09709 0.9615 0.9524 09414 09346 09259 09174 0.9091 08496 1 2 0.9612 (19426 0.9246 0.9020 08734 08573 08117 OX264 0.7972 0.7561 2 3 09706 0.94 0.9151 0890 0.8638 08396 08163 0.7938 0.7722 0.7513 0.7118 06575 3 4 0.9610 0.9238 0.8885 0.8548 08222 0.7921 0.7629 0.2350 0.7084 06155 0.3718 4 5 0.9515 19057 0.2626 08219 0.7835 0.7473 0.7110 0686 06.199 01209 0.5674 0.4972 6 0.9420 D.RO 08375 0.7903 0.7462 0.7050 06663 06302 05 0.5645 04123 6 7 0.9327 0.8706 0.8131 0.2599 0.7107 06651 06227 038.35 05410 05132 0.3750 2 0.9235 0.7307 0.676 06274 0.4668 04099 0.30 9 0.9141 0.8968 0.7664 0.7026 0.5446 03919 05439 0.3002 04604 0.100 0343 9 10 0.9053 0.8203 0.7441 0.5756 0.6139 0.5584 04632 0.4224 03855 0.3220 02472 10 11 0.963 ) 0.7224 0.5847 0526 04751 0429 03875 0.3505 02875 02149 11 12 0.8974 0.7014 06246 0.5568 0.4970 0.4440 03971 0316 12 0.8787 0.7730 06006 0.5903 0.4688 04150 01262 02897 0.3292 0.1635 11 14 0.5775 OSOS 04423 0.378 0.3.2005 0.2992 02633 0.204 0.1413 14 15 0.8613 0.74 ) 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 02794 0.1827 0.1229 15 16 0.8528 0.7284 0.6252 0.5339 0,4581 0.3936 0.3387 0.2919 0.2519 0.2176 01631 0.1069 16 17 0.4444 0.7142 05050 05134 04363 0.3714 03166 0.2703 0.2311 0.1978 0.1456 0.0929 17 18 DX360 0.7002 0.5874 0.4936 0.4155 0.3503 0 1959 2502 0.2120 0.1999 01900 18 19 0.8277 0.5703 06864 0.1957 04946 19 02765 0.1305 02317 0.1945 0.0703 0.1635 0.1161 0.14486 0.1784 04564 20 0:3118 08195 0.1037 0.0611 20 0.2584 0.6730 0.2145 0.3769 0.5537 0.3751 25 0.2953 0.0923 02130 0.6095 0.7798 ODSR 0.1842 0.4776 00304 0.1160 0.1400 23 30 0.7419 0:4120 30 ODISI 0.1741 02314 0.5521 0.303 00334 0.1314 0.0754 0.0994 0.0356 35 0.0189 0.0490 0.0676 0.1813 03554 35 0.0937 0.2534 0.5000 0.7059 0.0075 40 00118 OM 40 0.160 01221 0.0107 0.0037 0,0972 0.6712 0.1420 0.166 04529 03066 *Used to compute the present value of a son war amou. For example: How much would you neved to invest today at 10% compounded seminal o accumulate 5.000 ind years from day Using the factors of 12 and i = 5:12 semiannual periods and a seminal rate of 35), the factor is 0.5568. You would need to 32.781 day (33.000 x 0.3565) LOCO OTRO 11990 DONO OLSCO SONO 0.0573 TOETO FPV 2.000 euro 0064 TARIFI man 2000 27.3555 RO LETE USE HESE SHE DIT C INS 294 35 SEC SL SOS 99 H VISIE WS ELEON WINE SCLES ONCE 13 16 19 11:41 LOSET POTE SOTE PER 15 741 6 BOE 1242 114 INS 09 30 DOS BERCE IND 11 21 TE LIFE WE HERE SESSE SLETI PM SETE SESC TE 199161 GEN LULES SIL I HEIL DETI 13 WE SE ESMORE It CHEN 101 GIUS 18 ARE WIE TESTI ROL ELTOE ORE TERS BI LE 1592 4 6043 354 2.99 1216 WILO LE LI LOFT MIC 10237 PISY 12 3611 14 12495 MEY 9.95 TAI 7:06 ALEOL WE ELL HOE 16 15 1 13 CE POSS SPRES TONS WOCHE LITE WS ALOI LEPLY LASE LCHE LE CITES YO 14 13 2 LESTE TA 1146 ANS 936 BILETE IDE CLOTET LETE 18soll BRE TILS OW POLE LERY FOI 7561 7 LORE TU ISNES SOW UTE F 9.2536 6:45 S1 CLOS DONE CS T! VO 10 SO 64177 101 M TOM SSIN COUCH I 7.7217 71078 ST 2. 6011 2008 LE ESSE 7.8333 CE SSCE CAS 9 67337 TOUT 4.96 45638 5.74 3064 76517 633 764 4720 1 7 POVIT SEE 1000 ITS HII ISSET RO LSUS ROS + LAKE USCE 0669 LITS UST 17 5 49173 42134 345 439 PES SVET COOL TESTE EMOTE MONS SECT LOTE HE 5 4 4 250 44511 3639 2.1 LORE 33121 1:5TTI 37171 4000 2011 1981 WZ SCE 100 ZECZ ME 2 1632 19410 1994 NEVE HT USD CELI 100 WE SET BOSU 19 19616 U RICO 09354 166 09824 TOO 0913 44 10000 SI 2 1 Prihs 55 120 95 SE 75 Hale 55 MT1) Table Valo Anto