The dropdown is principal/ all coupon payments

You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 6 percent Term to maturity: 16 years Sinking fund: 5 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 11 percent after four years have passed, what is your capital gain or loss? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Use minus sign to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar. $ b. If you hold the bond 16 years, what do you receive at maturity? -Select- . C. What is the bond's current yield as of right now? Round your answer to the nearest whole number. % d. Given your price in a, what is the yield at maturity? Round your answer to the nearest whole number. % e. What proportion of the total debt issue is retired by the sinking fund? Round your answer to the nearest whole number. % f. If the final payment to retire this bond is $1,200,000, how much must the firm invest annually to accumulate this sum if the firm is able to earn 6 percent on the invested funds? Use Appendix C to answer the question. Round your answer to the nearest dollar. $ Interest Factors for the Present Value of One Dollar Time Period (e.g.. year) 1 1% 2% NM 990 980 971 961 951 3% 4% .980 971 1962 961 .943 925 1942 .915 .889 924 889 855 .906 863 822 5% 952 .907 .864 .823 .784 6% 7% .943 .935 .890 .873 .840 816 .792 .763 .747 .713 8% .926 .857 .794 .735 .681 9% 917 .842 .772 .708 .650 10% 12% 14% 15% 909.893 .877 870 .826 .797 .769 .756 .751 .712 .675 .658 .683 .636 .592 .572 .621 .567 519 497 16% .862 .743 .641 .552 476 18% .847 .718 .609 1516 437 20% .833 .694 .579 482 402 24% .806 .650 .524 423 .341 28% .781 .610 477 .373 -291 4 5 6 7 8 9 10 942 933 923 914 905 888 838 790 .746 .705.666 630 .871 .813 .760 .711 .665.623 583 .853 .789 .731 677 627 582 .540 .837 .766 .703 645 592 544 .500 .820 .744 .676 614 558 508 463 596 .547 502 460 422 564 507 1513 452 467 .404 424 361 386 .322 .456 .432 400 376 .351 327 .308 .284 .270 247 .410 .370 335 .354 .314 .279 .305 266 233 .263 226 .194 .227 191 .162 .275 .222 .179 .144 .116 .227 .178 .139 .108 .085 11 12 13 14 15 .896 .887 .879 .870 .861 .804 .788 .773 .758 .743 .722 .701 .681 .661 .642 .650 .625 .601 .577 .555 .585 .557 .530 .505 .481 .527 .497 469 .442 417 475 .444 415 .388 362 .429 .397 .368 .340 315 .388 .356 326 .299 .275 .350 .319 .290 .263 .239 .287 .257 .229 .205 .183 .237 -208 182 .160 .140 .215 .187 .163 .141 .123 .195 .168 .145 .125 .108 .162 .137 .116 .099 .084 .135 .112 .093 .078 .065 .094 .076 .061 .049 .040 .066 .052 .040 .032 .025 16 17 18 19 20 .853 .844 .836 .828 .820 .728 .714 .700 .686 .673 .623 .605 .587 .570 .554 .534 .513 1494 475 456 .458 436 416 396 377 .394 .371 .350 .331 .312 .339 317 .296 .276 .258 .292 .270 .250 .232 .215 .252 .231 .212 .194 .178 .218 .198 .180 .164 .149 .163 .146 .130 .116 .104 .123 .107.093 071 .054 .032 .108.093 .080 .060 .045 .026 .095 .081 .069 .051 038 021 .083 .070 ,060 .043 031 .017 .073 .061 .051.037 .026 .014 .019 .015 .012 .009 .007 25 .780 .610 .478 .375 .295 .233 .184 -146 .116 .092 .059 .038 .030 .024 .016 2010 .005 .002 30 .742 .552 -412 .308 .231 .174 .131 .099 .075 .057.033 .020 .015 .012 .007 .004 .002 .001 Interest Factors for the Future Value of an Annuity of One Dollar 1% 8% Time Period (e.g. year) 1 2 3 4 5 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 5% 1.000 2.050 3.152 4.310 5.526 6% 1.000 2.060 3.184 4.375 5.637 7% 1.000 2.070 3.215 4.440 5.751 1.000 2.080 3.246 4.506 5.867 9% 1.000 2.090 3.278 4.573 5.985 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.770 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.067 6.877 20% 1.000 2.200 3.640 5.368 7.442 6 7 8 9 10 6.152 7.214 8.286 9.369 10.462 6.308 6.468 7.434 7.662 8.583 8.892 9.755 10.159 10.950 11.464 6.633 6.802 7.898 8.142 9.214 9.549 10.583 11.027 12.006 12.578 6.975 8.394 9.897 11.491 13.181 7.153 8.654 10.260 11.978 13.816 7.336 7.523 8.923 9.200 10.637 11.028 12.488 13.021 14.487 15.193 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.978 9.930 11.413 12.915 14.240 16.499 17.518 20.798 21.321 25.958 11 12 13 14 15 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 13.486 14.207 14.192 15.026 15.917 15.618 16.627 17.713 17.086 18.292 19.599 18.599 20.024 21.579 14.972 16.870 18.882 21.051 23.276 15.784 17.888 20.141 22.550 25.129 16.645 17.560 18.977 20.141 21.495 22.953 24.215 26.019 27.152 29.361 18.531 21.384 24.523 27.975 31.772 20.655 24.138 28.029 32.393 37.280 23.044 27.271 32.089 37.581 43.842 25.732 32.150 30.850 39.580 36.786 48.496 43.672 59.195 51.65972.035 16 17 18 19 17.258 18.430 19.615 20.811 22.019 18.639 20.012 21.412 22.841 24.297 20.157 21.762 23.414 25.117 26.870 21.825 23.698 25.645 27.671 29.778 23.657 25.840 28.132 30.539 33.066 25.673 28.213 30.906 33.760 36.786 27.888 30.324 30.840 33.750 33.999 37.450 37.379 41.446 40.995 45.762 33.003 36.974 41.301 46.018 51.160 35.950 40.545 45.599 51.159 57.275 42.753 48.884 55.750 63.440 72.052 50.980 59.118 68.934 78.969 91.025 60.925 87.442 71.673 105.93 84.140 128.11 98.603 154.74 115.370 186.68 20 25 28.243 32.030 36.459 41.646 47.727 54.865 63.249 73.106 84.701 98.347 133.33 181.87 249.210 471.98 30 34.785 40.568 47.575 56.085 66.439 79.058 94.461 113.283 136.308 164.494 241.333 356.878 530.310 1181.8 Interest Factors for the Present Value of an Annuity of One Dollar Time Period (e.g., year) 1 2 3 4 5 1% 2% 3% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 0.990 0.980 0.971 0.962 0.952 0.943 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 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 6 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 8 7.652 7.325 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 7.786 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 2.603 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 5.988 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 7.943 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 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 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 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 17 .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 5.2 4.775 4.059 3.518 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 5.273 4.812 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 2.770 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 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778