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TABLE B.1 p = 1/(1 + i' Present Value of Rate 2% 4% 5% 6% 7% 8% Perlods 1% 3% 9% 10% 12% 15% 1

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TABLE B.1 p = 1/(1 + i'" Present Value of Rate 2% 4% 5% 6% 7% 8% Perlods 1% 3% 9% 10% 12% 15% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8417 0.8264 0.7972 2 0.8573 0.7561 0.9423 0.7938 2 3 0.9706 0.9151 0.8890 0.8638 0.8396 0.8163 0.7722 0.7513 0.7118 0.6575 4 0.9610 0.8885 0.7921 0.7629 0.7084 0.9238 0.8548 0.8227 0.7350 0.6830 0.6355 0.5718 0.7835 5 0.9515 0.9057 0.8626 0.8219 0.7473 0.7130 0.6806 0.6499 0.6209 0.5674 0.4972 6 0.9420 0.8375 0.7903 0.7462 0.7050 0.6663 0.5963 0.5645 0.4323 0.8880 0.6302 0.5066 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 470 0.5132 0.4523 0.3759 0.9235 0.5820 0.5019 0.8535 0.7894 0.7307 0.6768 0.6274 0.5403 0.4665 0.4039 0.3269 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606 0.2843 10 0.5083 0.3855 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.4632 0.4224 0.3220 0.2472 0.8963 0.3505 0.2149 11 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.2875 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2567 0.1869 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2292 0.1625 14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.2992 0.2633 0.2046 0.3405 0.1413 0.4810 15 0.8613 0.7430 0.6419 0.5553 0.4173 0.3624 0.3152 0.2745 0.2394 0.1827 0.1229 16 17 18 0.8528 0.8444 0.7284 0.7142 0.6232 0.6050 0.5339 0.5134 0.4581 0.4363 0.3936 0.3714 0.3387 0.3166 0.2959 0.2919 0.2703 0.2519 0.2311 0.2176 0.1978 0.1799 0.1631 0.1456 0.1069 0.0929 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2502 0.2120 0.1300 0.0808 19 20 0.8277 0.8195 0.7798 0.2765 0.1635 0.1486 0.6864 0.5703 0.4746 0.3957 0.3305 0.2317 0.1945 0.1161 0.0703 0.4564 0.3118 0.1784 0.6730 0.5537 0.3769 0.2584 0.2145 0.1037 0.0611 0.375 0.0923 25 0.6095 0.2330 0.1160 0.0588 0.0304 0.4776 0.2953 O.1842 0.1460 0.174 30 35 0.7419 0.7059 0.3083 0.2534 0.1314 0.0937 0.0573 0.0356 0.022 0.5521 0.5000 0.4120 0.2314 0.0994 0.0676 0.0754 0.0334 0.0151 0.3554 0.1813 0.1301 0.0490 0.0189 0.0075 40 0.6717 0.4529 0.3066 0.2083 O.1420 0.0972 0.0668 0.0460 0.0318 0.0107 0.0037 1 TABLE B.3 / i 1- (1 i)" Present Value of an Annuity of 1 D Rate Perlods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 1.886 1.9135 1.7833 1.7591 1.6257 1.9704 1.9416 1.8594 1.8334 .8080 1.7355 1.6901 2.8286 2.7751 2.6730 2.6243 2.5771 2.5313 2.2832 2.9410 2.8839 2.7232 2.4869 2.4018 3.5460 3.3872 3.2397 3.1699 2.8550 3.9020 3.8077 3.7171 3.6299 3.4651 3.3121 3.0373 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.6048 3.3522 5.4172 5.2421 4.9173 4.7665 4.3553 3.7845 6 5.7955 5.6014 5.0757 4.6229 4.4859 4.1114 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.5638 4.1604 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.3349 4.4873 5.5348 4.9676 5.7590 9 8.1622 7.7861 6.8017 6.2469 5.3282 4.7716 8.5660 7.4353 7.1078 6.5152 5.9952 10 8.1109 7.3601 7.0236 9.4713 8.9826 8.5302 7.7217 6.7101 6.4177 6.1446 5.6502 5.0188 11 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 6.8052 6.4951 5.2337 10.3676 7.1390 5.9377 12 9.9540 8.8633 8.3838 7.9427 7.1607 6.8137 5.4206 11.2551 10.5753 9.3851 7.5361 6.1944 13 10.6350 8.8527 8.3577 12.1337 11.3484 9.9856 9.3936 7.9038 7.4869 7.1034 6.4235 5.5831 14 12.1062 9.8986 9.2950 8.2442 7.7862 7.3667 13.0037 11.2961 10.5631 8.7455 6.6282 5.7245 14 9.2950 8.7455 7.7862 7.3667 13.0037 12.1062 11.2961 10.5631 9.8986 8.2442 6.6282 5.7245 5.8474 15 13.8651 12.8493 11.9379 11.1184 9.7122 9.1079 8.5595 8.0607 7.6061 6.8109 10.3797 16 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 6.9740 5.9542 17 15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.1196 6.0472 18 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.2497 6.1280 15.6785 19 17.2260 14.3238 12.0853 10.3356 9.6036 6.1982 13.1339 11.1581 8.9501 8.3649 7.3658 20 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.4694 6.2593 25 17.4131 15.6221 6.4641 22.0232 19.5235 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 7.8431 30 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.0552 6.5660 35 29.4086 24.9986 21.4872 18.6646 16.3742 14.4982 12.9477 11.6546 10.5668 9.6442 8.1755 6.6166 40 32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11,9246 10.7574 9.7791 8.2438 6.6418 Garcia Company issues 7.00%, 15-year bonds with a par value of $360,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6.00%, which implies a selling price of 109 7/9. Confirm that the bonds' selling price is approximately correct. Use present value Table B.1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers to nearest whole dollar amount.) Par Value Selling Price x Price 109 7/9 $ 395,172 360,000 = Cash Flow Table Value Present Value $360,000 par (maturity) value $12,600 interest payment Price of Bond Difference due to rounding of table values 395,172

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