The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 16 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.

		Bond Price
a.	7 percent
b.	9 percent
c.	13 percent

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Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 20 percent annual interest. The current yield to maturity on such bonds in the market is 8 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Compute the price of the bonds for the maturity dates:

		Bond Price
a.	40 years
b.	17 years
c.	8 years