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Problem 13-10 You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 7 percent Term to mattity:

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Problem 13-10 You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 7 percent Term to mattity: 12 years Sinking fund: 3 percent of outstanding bonds retired annually, the balance at maturity a. If you buy the bond today at its face amount and interest rates rise to 13 percent after five years have passed, what is your capital gain or loss? Assume that the bond pays Interest annually Use Appendix Band Appendix to answer the question. Use a minussion to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar $ h. If you hold the bond 12 years, what do you receive at maturity Principal What is the band's current yields of right now? Rund your answer to the nearest wiele number 4. Given your price in a what is the yields maturity found your answer to the nearest whole number What peoportion of the total debt issue is retired by the sky fund? Round your answer to the noirea whole number 1. If the final payment to retire this bond in 5800,000, how much must the firm west annually occurrulate this if the firmwable to compercent on the invested funds Use Appendix to answer the question. Round your answer to the nearest collec Problem 17-10 You are given the following information concerning a concallable, sirking fund debenture: Principal: $1,000 Coupon rate of interest: 7 percent Term to maturity: 12 years Sinking fund: 3 percent of outstanding bonds retired annually, the balance at maturity a. If you buy the bond today at its face amount and interest rates rise to 13 percent after five years have passed, what is your capital gain or loss? Assume that the bond anys meest aanly. Us Appendix Band Appendix D to answer the question. Use ammission to enter the loss amunt, if any, aw a negative value Round your answer to the rearest dolla 5 b. if you told the bond 12 years, what do you receive at maturity? Principal What the tond's current yielo as of right now? Round your answer to the nearest whole number Gwen your own, what is the vieidot maturity? Round your answer to the neprest whole number e. What proportion of the total de retired by the sinking fund? Round your answer to the nearest whole number, til the final payment to more this bond is $800,000, how much must the firm investoinnusly to accumulate this sum if them able to come percent on the invested funds Use Appendix to answer the question, Round your answer to the nearest dollar U WWWWws Interest Factors for the Present Value of One Dollar w Tag 14 Time Period le.a year Interest Factors for the Present Value of an Annuity of One Dollar 10% Time Period fee year 2% 3% 5% 6% 7% 8% 9% 12% 16% 18% 20% 24% 28% 32% 36 1 0.990 0.980 0.971 0.962 0.952 0943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 2 1970 1942 1913 1.886 1.859 1.833 1808 1.783 1759 1736 1.6901.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 3 2941 2.884 2.829 2.775 2.723 2673 2.624 2.577 2.531 2.487 2.402 2322 2.246 2.174 2106 1981 1.868 1766 1674 4 3.902 3,808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2914 2.798 2.690 2.589 2.404 2.241 2.096 1966 5 4.853 4713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2991 2.745 2.532 2.345 2.181 6 5.795 5.601 5.417 5242 5.076 4.917 4.766 4,623 4.486 4.355 4.111 3.889 3.685 3.498 3326 3.020 2.759 2534 2.399 7 6.728 6.472 6.230 6.002 5.786 5.582 5389 5.206 5.033 4.868 4564 4.288 4.039 3.812 3.605 3.242 2.937 2678 2.455 8 7.652 7325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3,076 2.786 2.540 9 8.566 8.162 7786 7.435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4,607 4,303 4,031 3.566 3.184 2.868 2603 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 10.368 9.787 9.253 8.760 8.306 7.887. 7.499 7.139 6.805 6.495 5988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 12 11.255 10.575 9.954 9.385 8.863 8.384 7943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 13 12.134 11348 10.635 9.986 9.394 8.534 8.358 7904 7.487 7103 6.424 5,842 5.342 49104.533 3912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2740 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7606 6,811 6.142 5.575 5.092 4.675 4.001 3.483 3,076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9,447 8.851 8.312 7.824 6974 6.265 5.669 5.162 4730 4.003 3.503 3.088 2.758 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.002- 7.120 6.373 5.749 5.222 4.775 4.059 3518 3.097 2.763 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 5.818 5.2734.812 4.080 3.529 3.104 2.767 19 17.226 15,678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4,097 3.539 3.109 2770 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17413 15.622 14.094 12.783 11654 10,675 9.823 9,077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2776 30 25.808-22.937 19.600 17.292 15 373 13.765 12.409 11.258 10.274 9.427 8055 7003 6.177 5,517 4979 4.160 3.569 3.124 2778

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