Use Appendix D & B for both questions

Appendix D:

appendix B:

Problem 13-02 A $1,000 bond na 5.5 percent coupon and matures after ten years. If current interest rates are percent, what should be the price of the bond? Assume that the bond plays interest annually. Use Appendix Band Appendix to answer the question, Round your answer to the nearest dola 5 b. If after five years interest rates are still 9 percent, what should be the price of the bond? Use Appendix and Apendix D to answer the question. Assume that the bond pays interest annually Round your answer to the nearest dollar 5 Even though interest rates did not change in and b, why did the one of the bond chang The price of the bond with the longer term than the price of the bond with the starten as the investors will collect the select interest payments and receive the priopal within a longer period of time d. Change the interest rate and to 5 percent and rework your answers. Assume that the bond part inferest any. Round your answers to the nearest dolle Price of the bond ten years to mais Price of the bond (five years to maturity): 5 Even though the interest rate is 5 percent in both calculations, why are the bid prices cerevit? The price of the bond with the longer terms Select that of the bond with the shorter to the westors will collect the select interest arments for a longer period of time Problem 13-01 A $1,000 band has a coupon of percent and matures after eight year mume that the bond part interest wally What would be the bonds price i comparable debt yields 8 percent use Appendix Band Aspendix to answer the question. Round your answer to the neerest de 5 h. What would be the price of comparable debt vields 8 percent and the bond matures alter four years? Use Appendix and Appendix answor the question. Found your answer to the nearest dollar 5 than the principal payment of the bond Why the different in and Theme of the bond in ais Select than the poet of the bond in the principal payment of the bordet in bin tone) d. What are the current yields and the yields to matunty in and b2 Round your ato two decimal places The band matures alterlit yeurs C YTM The bond mature am four years CY YTM Interest Factors for the Present Value of an Annuity of One Dollar Time Period year 1 2 3 4 5 3% 6% 95 10% 12% 18% 20% 24 28% 327 0.990 0.980 0,971 0962 0.952 0.943 0.935 0.926 0917 0909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.756 0.735 1.970 1942 1913 1.886 1859 1833 1808 1.783 1759 1736 1.690 1.647 1.605 1.566 1.528 1457 1392 1332 1276 2.9412.884 2.829 2.775 2.723 2673 2.624 2.577 2531 2 487 2 402 2.322 2.245 2.174 2106 1981 1.868 1.766 1674 3.902 3.808 3717 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 2241 2.096 1966 4 853 4.713 4.580 4.452 4329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3:127 2.991 2745 2.532 2345 2.181 6 5.795 5,601 5417 5.242 5.076 4917 4.766 4.623 4.486 4355 4.111 3.889 3685 3.498 3326 3.020 2.759 2.534 2.399 7 6.728 6.472 6.230 6.002 5786 5.582 5:389 5.206 5.033 4.868 4.564 4288 4,039 3.812 3.605 3242 2.937 2.678 2455 8 7.652 7325 7020 6.733 6.463 6.210 5971 5.747 5.535 5335 4968 4,639 4344 4.078 3.837 3.421 3.076 2.786 2.540 9 8.566 8.162 7.786 74357.108 6.802 6.515 6 247 5.985 5.759 5.328 4946 4.607 4 303 4.031 3 566 3.184 2.868 2,603 10 9.471 8.983 B.530 8.111 7.722 7360 7024 6.710 6.418 61455.650 5.216 4833 4.494 4.193 3.682 3.269 2.930 2.650 11 10368 9.787 9.253 8.760 8.306 7.887 7.499 7139 6.805 6.495 5.988 5.453 5.029 4.656 4327 3.776 3.335 2978 2.683 12 11.255 10.525 9.954 9.385 8.863 8.384 7.943 7.536 7.161 5.814 6.194 5.660 5.197 4.793 4.439 3851 3:387 3.013 2.708 13 12.134 11.348 10.6359.986 9.394 8.534 8.358 7.904 7487 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 5.00B 4.611 3962 3.459 3.061 2.740 15 13.865 12.849 11938 11.118 10:3809712 9.108 8.559 8.060 7.606 6,811 6.142 5.575 5.092 4,675 4001 3.483 3,076 2.750 16 14 718 13.578 12.561 11652 10.838 10.106 9.447 8.851 8.312 7824 6.974 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 63735.749 5.222 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 6467 5.818 5.273 4812 4.000 3.529 3104 2.767 19 17.226 15.678 14.324 13,134 12.085 11.158 10.336 9.604 8.950 8.365 7366 6.550 5.877 5.316 4.844 4,097 3539 3.109 2.770 20 18.046 16.35 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8514 7.469 6623 5.920 5353 4.870 4.110 3.5463.113 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 6873 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 12409 11,258 10.274 9.427 8.055 7.003 6.1775.517 4.979 4.160 3.569 3.124 2.778 Interest Factors for the Present Value of One Dollar 28 781 WN