Zheng Enterprises, a multinational drug company specializing in Chinese medicines, issued $50 million of 16 percent coupon rate bonds in January Year 1. The bonds had an initial maturity of 25 years. The bonds were sold at par and were callable in five years at 110 (that is, 110 percent of par value). It is now January, Year 6, and interest rates have declined such that bonds of equivalent remaining maturity now sell to yield 10 percent. How much would you be willing to pay for one of these bonds today? Use Table II and Table IV to answer the questions. Round your answer to the nearest dollar. $ TABLE Present Value Interest Factor (PVIF ($1 at /% per period for a periods: 1 PV, FV.PVIFA TABLE Present Value of an Annuity Interest Factor (PVIFAI (51 per period at per period for a periods): 1 PVIFA PVAN, - PMT PVIFA) PIF 10% 1.000 0.909 0. 0.75 0.680 0821 0.564 $% 09 1.783 2577 3312 3.993 1.000 0.901 6812 0.731 0.659 0.593 0.535 10% 0 000 1.735 2487 3.170 3.791 119 0.901 1.713 2.444 3.102 3.696 4.231 0293 1.690 2.402 3.037 3.605 OSAS 1.668 2361 2.974 3512 0.301 4623 4355 4.500 9% 0017 1.759 2531 3.140 3.890 4486 5033 5535 5995 6.418 6895 7.161 7.487 012 2513 7652 8% 1.000 0.926 0.857 0.792 0.735 0681 0630 0.58 0.540 0.500 NAS 0463 0:49 0.397 0.368 0.340 0.315 0.202 0.270 0.250 0.232 0.215 0.158 6667 5335 5.750 6.145 6495 1.000 0917 0842 J72 0.708 ose 0596 AY 0502 0.450 0.022 0.38 0356 0.326 0.299 0275 0.252 0231 0212 0.194 0.178 0.126 0.116 0.075 0.032 001) 0.006 5.517 3.89 6.207 6.492 1000 0.885 071 0.093 061) 054) 0.480 0.05 0.376 0333 0.295 0.261 0231 0.204 0.181 0.160 0.141 0.125 0.111 0.098 0.087 0.053 0.047 0.026 0.00B 0.002 0.001 9486 7736 4968 532 5.650 5.93 6.194 6.424 6628 6.811 6.974 7.120 7250 7306 2.469 7784 JH4 600 1.000 0.893 0.797 0712 0.636 0.567 0507 0452 0404 0.361 0.322 0.287 0.257 0.229 0.205 40 0183 0.163 0.14 0.130 0.116 0.104 0.06 0.059 0.033 0.011 0.003 0.001 36% 1.000 0.735 0673 0554 0.467 0.424 0.380 0.350 0.319 0.290 0.263 0.709 0.218 0.199 0.180 0.167 0.149 0.102 0.092 0097 0.002 0.000 0.003 22 1.000 0781 0610 0472 0.373 0.291 0146 12.73 7343 Periodo g 1.000 1 0.990 2 0.080 3 0.971 0.961 5 0.951 0 0.942 7 0.933 8 0923 0.914 10 0.905 10 OBOS 12 0.587 13 0.879 14 0670 15 15 0.61 16 0653 17 0941 19 0.836 1 19 0828 20 0820 2 0.789 25 0.790 30 0.742 0.672 0.600 50 0.550 Period, 14% 1.000 1 2 0.700 3 0.679 1 0.592 5 0.519 0456 0.400 0.351 9 0.308 10 0.270 11 0.217 12 0208 12 13 0.162 14 0.160 15 0140 18 10 0.123 17 0.100 18 0095 19 19 DOBE w 29 0.072 0.043 25 0011 23 0.020 40 0.005 50 0.001 0.000 29 39 4% 59 6% 74 1.000 1.000 1.000 1000 1.000 1.000 0.980 0971 0.962 0.952 0.943 0.935 0.961 0.943 0.935 0.007 0.800 0.373 092 0913 0889 0924 0.889 0.840 0810 0823 0855 0.792 0.763 0.906 0903 0822 084 0.747 0213 0.898 0838 0.790 0.746 0.705 0666 0.821 0813 0.700 we 0711 0.853 0.789 0.231 0677 0.665 0.621 OSB2 0.837 0.766 0.703 0645 0.592 0.544 0.820 0.744 6 0.66 0.358 0.500 0.804 0722 aces 0650 0585 0.522 0.475 0388 0701 0625 0557 0.490 0.1 0773 0681 CM 0.601 0530 459 0415 075B 0561 0.577 0505 0.442 0.389 0.743 0642 0555 0431 0412 0162 0.738 0673 0.534 0458 OM 0.33 0313 0.371 0436 0.317 0.200 0587 0494 0.416 0.350 0.296 0.686 0570 0.475 0.396 0.331 0.276 0.456 0.372 0.312 0.250 0.622 0.492 0.390 0310 14 0.242 0.197 0.610 0.478 0.375 0.295 0.233 0.164 0.552 0412 0.308 0.231 0.174 0.131 0.453 0307 0.200 0.142 0.097 DUD67 0.372 0228 0.141 008 0,054 0.034 0305 0.170 0.095 0.054 0.030 0.017 15% 16% 17% 10% 1.000 1.000 1.000 1.000 0.855 0,840 0.743 0.718 0038 0706 0.011 0.009 0.593 0572 0.552 0.516 0.497 0.499 0456 0.437 0419 0412 0.410 0.390 0375 0333 0.354 0.252 0.314 0.256 0337 0.305 JAS her 0.366 0.240 0.334 OM 0.243 0.35 20 0247 0227 0.191 0.126 0.195 0.178 0.162 0.148 0.187 0.16 0.152 0.137 0.124 0.160 0.145 0.130 0.104 0.141 0.125 0.111 0.099 0.88 0123 0.101 0.095 0.014 0.074 0.100 0.093 0.001 DOTI 0.002 2012 0.080 0.009 0.000 0.02 0031 0.06 0.059 0.051 0.044 0.079 wo 0.000 DOS w 0.043 ww 0.00 0.051 0.003 0.037 00 0015 0.028 0.001 0.019 o.is 2033 0.074 0.000 0.016 0.00 0.012 0.009 0.007 0.005 0.004 0.003 0.002 0.001 0001 0.001 0.000 0.000 0.000 11.258 0.099 0.046 0021 0.010 6.982 7.191 7.379 7.549 7.702 7830 7.963 8.340 8.432 8.691 8.951 9.042 9.074 32% 0.758 Periodo 19 24 1 0.000 0.980 0.971 0062 0052 0.043 0035 2 1.970 1.942 1913 1.885 1.859 1.833 1.808 3 2.941 2.884 2.829 2.775 2.723 2673 2.624 4 3.902 3.808 3.717 3,630 3.546 3.465 3.387 5 4.853 4.713 4580 4452 4329 4212 4.100 6 5.795 5601 5417 5.242 5.076 4.917 4.760 7 6.720 6472 6.230 6002 5.786 5.582 5.389 8 7.325 7.020 6.733 6.210 5.971 9 8.566 8.162 7.786 7435 7.100 6.802 6.515 10 9.471 8.983 8.530 B.111 7.722 7.300 7.02 11 10.368 9.787 9.753 8.760 8.300 7887 7.490 12 11.255 10,575 9.954 9.385 8.853 7.943 13 12.134 11.343 10.635 9.394 8.853 Se 14 13.004 12.105 11.296 10.563 9.899 9.295 15 8.745 13.865 12.849 11.938 11.118 10.380 9.712 9.108 16 14.718 13.578 12.561 11652 10.838 10.106 9.447 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 19 17.226 15.678 14324 13.134 12.085 11.158 10.336 20 11.470 10.594 18.046 16.35! 14877 13590 12.462 24 21.243 18914 16.936 15.247 13.799 12.550 11.469 25 22.073 19523 17413 15.622 14094 11654 30 25.808 22.397 19.600 17.292 15373 13.765 12.409 10 32.835 27.355 23.115 19.793 17.159 15.046 13.332 50 39.196 31424 25.730 21.482 18.256 15.762 13.801 60 41.955 34.761 27.676 22.623 18.929 16.161 14.039 Period, 14% 15% 104 174 189 19% 1 0.877 DUB/0 0.802 0855 0.847 0.810 2 1647 1605 1.5RS 1566 1547 3 2.283 2.745 2210 2.174 2.140 4 2.914 2.855 2.793 2.743 2600 2639 5 3352 3.274 3.199 3.127 3.058 6 3.899 3.784 3.65 359 3.490 3.410 2 4288 4.160 4.039 3922 3812 3.706 8 4.639 4487 4344 4.207 4078 3.954 9 4722 4.607 4451 1163 10 5.216 5.019 4659 4339 11 4656 4496 12 5.860 5.421 5.197 4.968 4.793 4511 5.842 5.583 5.342 5.118 4910 4715 14 6.002 5.724 5.463 5229 5.000 4802 15 6.142 5.847 5.575 5324 5.092 4876 16 6.265 5.954 5.669 5405 5.162 4938 12 6.373 6017 5.249 5.475 5.222 4.990 18 6.128 5818 5534 5273 5.033 19 6.550 6.198 5877 5316 5.070 20 6.259 5.929 5.628 5.353 24 6.835 6.434 6,073 5.451 25 6.873 6.464 0,097 5.700 5.467 5.195 30 7003 6.566 6 177 5829 5517 5235 40 7.105 6.642 6.233 5871 5548 5.258 50 7.133 6.661 6.245 5880 5.554 5.262 60 7.140 6,665 5882 5555 5.263 8.055 8.24 8.304 8.324 5.200 5.747 6.347 6.710 7.139 7536 7.904 8.244 8.559 8851 9.122 9372 9.604 9.818 10529 10675 11935 12.233 12.372 2046 0.833 1528 2.105 2.589 2.991 3.326 3.605 3.837 4.031 4.193 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 8.051 8312 8.544 8.756 8.950 9.128 9.77 0823 10274 10757 10.952 11.048 24% 0.800 1457 1.981 4.799 5.132 5.420 5.687 5918 6.122 6.302 6462 6.504 6.729 6.840 6.938 7.025 7.280 7330 7.496 7.634 7675 7.687 404 0714 1.224 1.589 1.840 2.035 2.168 2.263 2331 7.100 7.367 7.606 7824 8022 8.201 8.365 8.514 8. sas 9.077 9.427 9.779 9.915 9.967 28% 0781 1.392 1968 2.241 2.532 2.259 2.937 3.070 3.184 3.269 0.434 0391 0352 0317 0.286 0.258 0232 0.209 0.188 0.170 0.153 0.138 0.124 0.082 0.074 0.044 0.015 0.005 0.002 32% 1000 0758 0.374 0.329 0.250 0.189 0.143 0.108 0.02 0.002 0047 0.036 0.027 0.0021 0.016 0.012 0.009 0.007 ODOS 0.004 0.001 000 0.000 100 0870 1.000 0877 1.000 0.806 OM 1312 0.750 0.731 ABS 0541 338 0301 2.332 361 0.735 1.276 1674 1.966 2.181 2.399 964 2538 200 DANS 2.745 3.020 3.242 va 0.252 0.215 0.158 0.116 O.DAS 0.063 0227 3.21 0200 4.946 202 2.319 0.2014 00 5453 5234 5029 4336 0.579 0402 0335 0.279 0.333 0.194 0.162 0.135 0.112 0.093 0.07 0,065 0.054 DUIS 0.039 0.031 w 0.006 0.013 0.010 0.004 0.001 0.000 1.766 2.096 2.345 2.534 2678 2.786 2.968 2.930 2978 3.013 3.040 3.061 3.076 3.088 3.097 3335 0.524 003 0.31 0.275 0.222 0170 0144 0.116 0.094 0.076 0.061 0.049 0.040 0.032 0.026 0.021 0.017 0.014 0.006 000 . 0.003 0.000 0.000 0.000 0.178 0.130 0.108 0.005 0056 0052 0010 0032 0025 0.019 0.015 2012 0.000 2007 0001 0.000 1.000 0714 0.310 0.260 0.185 0.095 0.068 0.048 0.033 0.025 0.018 0.013 0.009 0005 0.005 0.003 0.002 0.002 0.001 0.000 0.000 0.000 0.000 0.000 0.000 3.506 3.682 3.776 3.851 3.912 3.962 4.001 4033 4059 4080 4.097 4110 0.034 0.025 0.018 0.014 0.010 0.007 0.005 0.004 0.003 w 0.002 0.001 0.000 2.540 2.603 2.650 2.683 2.703 2.727 2.740 2.750 2.758 3.387 3.427 3.459 3.483 3503 3518 2414 2438 2.456 2.469 2.478 2.454 2489 2492 2494 2.496 3529 3.104 3.109 2.267 554 6051 5.101 5.182 2.450 2013 0.601 0.000 4.870 4.937 4.943 4.979 4.997 4.999 5.000 3539 3546 3.562 3504 3.569 3.571 3.571 3571 3.113 3.121 3.122 3.174 3.125 3.125 3.125 2.770 2.772 2.776 2.776 2.778 2.778 2.778 2.778 0.001 0000 4147 4160 4166 4.167 4167 0.000 0.000 0.000 2.499 2.500 2.500 2.500 2.500 0.000 0.000 0.000 0.000 0.000 0.000 0.000 000 0.020