Problem #1

Midland Oil has $1,000 par value bonds outstanding at 25 percent interest. The bonds will mature in 15 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Compute the current price of the bonds if the present yield to maturity is: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)

	Bond Price
a. 10 percent	$
b. 12 percent	$
c. 9 percent	$