The Lone Star Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 20 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. 6 percent 9 percent 13 percent b. C. Appendix & Present value of $1, PV Period 1% 1 0.990 0.980 2 0.960 0.061 3 0.971 0.942 4 0.961 0.924 5 0.951 0.906 6 0.942 0.888 7 0.933 0.871 8 0.923 0.853 9 0.914 0.837 10 0.905 0.820 11 0.896 0.804 12 0.887 0.788 13 0.879 0.773 14 0.870 0.758 15 0.861 0.743 16 0.853 0.728 17 0.844 0.714 18 0.836 0.700 19 0.828 0.686 0.820 0.673 0.780 0.610 0.742 0.552 0.672 0.453 0.608 0372 68883 20 25 30 40 50 PV=FV 3% 0.971 0.943 0915 0.888 0.863 0.837 0.813 0,789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0.587 0.570 0.554 0.478 0412 0.307 0.228 5% 0.962 0.952 0.925 0.907 0.889 0.864 0.855 0.823 0.822 0.784 0.790 0.746 0,760 0.711 0731 0677 0.703 0645 0.676 0.614 0.650 0.585 0.625 0557 0.601 0.530 0.577 0.505 0.555 0481 0.534 0458 0.513 0436 0.494 0.416 0.475 0.396 0.456 0.377 0.375 0.295 0.308 0.231 0.208 0.142 0.141 0.087 Percent 6% 0.943 0800 0.840 0.792 0.747 0.705 0.665 0.627 0502 0558 0527 0497 0.469 0.442 0417 0.394 0,371 0.350 0.331 0312) 0.233 0.174 0.097 0.054 7% 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.544 0.508 0.475 0.444 0.415 0388 0.362 0.339 0,317 0.296 0.277 0.258 0.184 0.131 0.067 0,034 BY 0.926 0.857 0.794 0.735 0,681 0.630 0583 0.540 0.500 0.463 0429 0.397 0.368 0.340 0315 0.292 0270 0.250 0.232 0.215 0.146 0.099 0.046 0.021 9% 0.917 0.042 0.772 0.708 0.650 0.596 0.547 0.502 0.460 0422 0.388 0.356 0.326 0.299 0275 0.252 0.231 0212 0194 0178 0.116 0.075 0032 0.013 10% 0909 0826 0.751 0.683 0.621 0.564 0513 0467 0424 0.386 0.350 0319 0290 0263 0.239 0218 0198 0.180 0.164 0.149 0.092 0.057 0.022 0.009 11% 0901 0812 0.731 0.659 0.593 0.535 0.482 0434 0391 0.352 0.317 0.206 0.258 0232 0.209 0.188 0.170 0.153 0.138 0.124 0.074 0.044 0015 0.005 12% 0.893 0797 0712 0636 0.567 0.507 0452 0404 0.361 0.322 0,287 0257 0.229 0205 0.183 0.163 0.146 0.130 0.116 0.104 0.059 0.033 0011 0.003 Appendix B (concluded) Present value of $1 Period 13% 14% 15% 16% 1 0.885 0.877 0.870 0.862 2 0.783 3 97693 0:675 0613 0.592 0.769 0.756 0.743 0.641 0.552 0.658 0.572 4 S 0.543 0.519 0.497 0.476 6 0.480 0456 0.432 0,410 7 0.425 0.400 0.376 0:354 8 0.376 0.351 0.327 0.305 9 0.333 0.308 0.284 0.263 0.227 0.247 0.295 0.270 0.261 0.237 0.215 0.195 0.187 0.168 0.231 0208 0204 0.182 0.163 0.145 0.181 0.160 0.141 0.125 0.160 0.140 0.123 0.108 0.095 0.141 0.123 0.107 0.093 0.001 0.125 0.108 0.093 0.069 0,080 0.111 0.095 0.081 0.069 0.059 0.098 0,083 0.070 0.051 0.060 0.087 0.073 0.061 0.051 0043 0.047 0.038 0.030 0.024 0.020 0.026 0.020 0.015 0.012 0.009 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.002 0 0.001 10 11 12 13 HERBS22298 15 16 17 18 19 20 25 30 40 50 Percent 17% 18% 19% 20% 25% 30% 36% 40% 50% 0.847 0.833 0.800 0.769 0.741 0714 0.667 0.855 0731 0624 0.840 0.718 0.706 0.694 0:640 0592 0.549 0,510 0.444 0.609 0.593 0.579 0.512 0.455 0.406 0.364 0296 0.534 0515 0.499 0.482 0.410 0.350 0.301 0.260 0.198 0456 0437 0.419 0.402 0.328 0.269 0223 0.186 0.132 0.390 0.370 0.352 0.335 0.262 0.207 0.165 0.133 0.088 0.333 0.214 0.296 0.279 0,210 0.159 0:122 0.095 0.059 0.285 0.266 0.249 0.233 0.168 0.123 0.091 0.068 0039 0.243 0.225 0.209 0.194 0.134 0.094 0.067 0.048 0.026 0.208 0.191 0.176 0.162 0.107 0.073 0.050 0.035 0.017 0.178 0.162 0.148 0.135 0.086 0.056 0.037 0.025 0.012 0.152 0.137 0.124 0.112 0.069 0.043 0.027 0.018 0.008 0.130 0.116 0.104 0.093 0.055 0.033 0020 0.013 0.005 0.088 0.099 0.111 0.078 0044 0.025 6003 0.009 0.015 0.011 0.020 0.084 0.074 0.065 0.035 0.006 0.002 0071 0.062 0.054 0.028 0.015 0.008 0.005 0.002 0.060 0.052 0.045 0023 0.006 0.003 0.001 0.012 0.009 0.005 0.051 0,044 0038 0.018 0.002 0.001 0.043 0037 0.031 0.014 0.007 0.002 0.003 0.031 0.037 0.026 0.012 0.005 0.002 0,001 0.016 0.013 0.010 0.004 0.001 0.001 0 0.007 0.005 0.004 0.001 0.001 0.001 0.001 0 0 0 0 0 oooo 0 0 ooooooo oooo 0 0 000000 Appendix D Present value of an annuity of $1, PV PV-A 1- Period 1% 2% 3% 4% 5% 1 0.990 0.980 0.971 0.962 0.952 2 1.970 1.942 1.913 1.886 1.859 3 2.941 2.884 2.829 2.775 2.723 3.902 3.808 3,717 3.630 3.546 4.853 4.713 4.580 4.452 4.329 5.795 5.601 5417 5.242 5.076 6,728 6.472 6.230 6.002 5,786 7,652 7.325 7,020 6.733 6.463 8.566 8.162 7.786 7.435 7.108 9.471 8.983 8.530 8.111 7.722 10.368 9.787 9.253 8.760 8.306 11.255 10.575 9.954 9.385 8.863 12.134 11.348 10.635 9.986 9.394 13.004 12.106 11.296 10.563 9.899 13.865 12.849 11.938 11.118 10.380 14.718 13.578 12.561 11.652 10.838 15.562 14.292 13,166 12.166 11.274 16.398 14.992 13.754 12.659 11.690 17.226 15.678 14.324 13.134 12.085 18.046 16.351 14.877 13.590 12.462 22.023 19.523. 17.413 15.622 14.094 25.808 22:396 19.600 17.292 15,372 32.835 27.355 23.115 19.793 17.159 39.196 31.424 25.730 21.482 18.256 7 8 9 10 11 12 13 14 15 16 17 8 9 30 25 30 40 50 18 19 1 (1+/ 20 Percent 6% 7% 8% 10% 11% 9% 0917 0.943 0.935 0.926 1.783 1.833 1.808 1.759 1.736 0.909 0.901 1.713 2.407 2.444 2673 2.624 2.577 2.531 3.240 3.465 3.39 3.312 4212 4.100 3.993 3.170 3.102 3.890 3.791 3.696 4.231 4.868 4.712 4917 4767 4.623 4.486 4.355 5582 5.389 5.206 5.033 5.535 6.210 5.971 5.747 5.335 5.146 6.802 6.515 6.247 5.995 5.759 5.537 7.360 7.024 6.710 6.418 6.145 5.889 7.887 7.499 7.139 6.805 6.495 6,207 8384 7.943 7.536 7.161 6.814 6.492 8.853 8.358 7.904 7.487 7.103 6.750 9.295 8.745 8.244 7.786 7.367 6.982 9.712 9,108 8.559 8.061 7.606 7.191 10.106 9447 8.851 8.313 7.824 7.379 10.477 9.763 9.122 8.544 8.022 7.549 10.828 10.059 9.372 8.756 8.201 7.702 11.158 10.336 9.604 8.950 8.365 7.839 11.470 10.594 9.818 9.129 8.514 7.963 12.783 11.654 10.675 9.823 9.077 8.422 13.765 12.409 11.258 10.274 9.427 8.694 15.046 13.332 11.925 10.757 9.779 8.951 15.762 13.801 12.233 10.962 9.915 9.042 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6,424 6.628 6811 6.974 7.120 7.250 7.366 7.469 7.843 8.055 8.244 8.304 Appendix D (concluded) Present value of an annuity of $1 Period 13% 14% 15% 16% 1 0.885 0.877 0870 0.862 2 1.668 1.647 1.626 1.605 3. 2.361 2.322 2.283 2.246 4 2.974 2.914 2.855 2.798 5 3517 3.433 3.352 3.274 6 3.998 3.889 3.784 3.685 7 4.423 4.288 4.160 4.039 8 4,799 4.639 4.487 4344 9 5.132 4.946 4.772 4.607 10 5.426 5.216 5.019 4.833 11 5.687 5.453 5.234 5.029 12 5.918 5.421 5.660 5.197 4.988 5.118 5342 6.122 13 5.583 5.842 6.002 5.724 5.468 5.229 6.302 14 6.462 15 6.142 5.847 5.575 5.324 16 6.604 6.265 5.405 5.954 5.668 5.475 5.749 17 6.729 6.373 6.047 6.840 6.128 6.467 5.818 18 5.534 19 6.938 6.550 6.198 5.877 5.584 7.025 6.623 6.259 5.929 5.628 7.330 5.766 6.464 6.097 6.873 5.829 7.496 6.566 6.177 7.003 5.871 6.642 7,105 6.233 7.634 5.880 6.246 7.133 6.661 7.675 888585 20 25 30 40 50 Percent 20% 19% 0.840 0.833 1.547 1.528 40% 0714 1.224 1.589 1.849 2035 2.168 2.263 2331 2.379 2.414 2.438 2.456 2.469 2478 2.484 2.489 2.840 2.492 2.844 2.494 2.848 2.496 2.850 2.497 2.856 2.499 2.857 2.500 2.857 2.500 2.857 2.500 17% 18% 25% 30% 35% 0.855 0.800 0.769 0.741 0.847 1566 1.585 1.440 1.361 1.289 2210 2.174 2.140 2.106 1.952 1816 1.696 2.743 2.690 2.639 2.589 2.362 2166 1.997 3.199 3.127 3.058 2.991 2.689 2,436 2.220 3.589 3.498 3410 3.326 2951 2.643 2.385 3.922 3.812 3.706 30,35 3.161 2.802 2.500 4.207 4.078 3.954 3.837 3.329 2.925 2.598 4.451 4.303 4.163 4031 3463 3.019 2.665 4.659 4.494 4.339 4.192 3571 3.092 2.715 4.836 4.656 4.486 4.327 3.656 3.147 2.752 4.793 4611 4.439 3.725 3,190 2.779 4.715 3.780 4.533 4.910 3.223 2.799 5.008 4611 4.802 2814 3.824 3.249 4.876 4.675 5.092 3.859 2.825 3.268 4.938 5.162 3.887 3.283 2.834 4.730 5.222 4.988 4.775 3910 3.295 5.273 5.033 4812 3.928 3.304 5.070 3.942 4.843 5.316 3311 3.954 5.353 4.870 5.101 3.316 5.195 3.985 4.948 5.467 3.329 5517 5.235 3.332 3.995 4.979 3.999 3.333 4.997 5.548 5.258 5.554 5.262 3.333 4.999 4.000 50% 0667 1.111 1.407 1.605 1.737 1.824 1,883 1.922 1.948 1.965 1.977 1.985 1.990 1.993 1.995 1.997 1.998 1,999 1,999 1.999 2.000 2.000 2.000 2.000