Question

Exodus Limousine Company has $1,000 par value bonds outstanding
at 17 percent interest. The bonds will mature in 50 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 percent yield to
maturity is: **(Do not round intermediate calculations. Round
your final answers to 2 decimal places. Assume interest payments
are annual.)
**

Exodus Limousine Company has $1,000 par value bonds outstanding
at 17 percent interest. The bonds will mature in 50 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 percent yield to
maturity is: **(Do not round intermediate calculations. Round
your final answers to 2 decimal places. Assume interest payments
are annual.)
Please show step by step**

Bond Price | ||

A. | 5% | |

B. | 9% |

Answer #1

Value of Bind = PV of Cash Flows from it.

Value of Bond = [ Int per anum * PVAF(r%, n) ] + [ Maturity Value * PVF (r%, n ]

PVAF = sum of PVF (r%, n)

where r is YTM and n is No. of years.

**Value of Bond if YTM is 5%:**

Value of Bond = [ Int per anum * PVAF(r%, n) ] + [ Maturity Value * PVF (r%, n ]

= [ 170 * PVAF (5%, 50) ] + [ 1000 * PVF(5%, 50) ]

= [ 170 * 18.2559 ] + [ 1000* 0.0872 ]

= 3103.51 + 87.20

= 3190.71

**Value of Bond if YTM is 9%:**

Value of Bond = [ Int per anum * PVAF(r%, n) ] + [ Maturity Value * PVF (r%, n ]

= [ 170 * PVAF (9%, 50) ] + [ 1000 * PVF(9%, 50) ]

= [ 170 * 10.9617 ] + [ 1000* 0.0134 ]

= 1863.49 + 13.45

= 1876.94

PVAF, PVF are taken from PVAF table and PVF table respectively.

Midland Oil has $1,000 par value bonds outstanding at 18 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:
15percent_________
8percent__________
11percent_________

Kilgore Natural Gas has a $1,000 par value bond outstanding that
pays 14 percent annual interest. The current yield to maturity on
such bonds in the market is 11 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 these maturity dates:
(Do not round intermediate calculations. Round your final
answers to 2 decimal places. Assume interest payments are
annual.)...

the Lone Star Company has $1000 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 price of the bonds if the present yield to maturity is
7 percent, 9 percent, 12 percent.

Essex Biochemical Co. has a $1,000 par value bond outstanding
that pays 12 percent annual interest. The current yield to maturity
on such bonds in the market is 10 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: (Do
not round intermediate calculations. Round your final answer to 2
decimal places. Assume interest payments are annual.)...

Kilgore Natural Gas has a $1,000 par value bond outstanding that
pays 12 percent annual interest. The current yield to maturity on
such bonds in the market is 10 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 these maturity dates:
(Do not round intermediate calculations. Round your final
answers to 2 decimal places. Assume interest payments are
annual.)...

How to you compute CPT PV without a financial
calculator?
Barry’s Steroids Company has $1,000 par value bonds outstanding
at 14 percent interest. The bonds will mature in 50 years.
If the percent yield to maturity is 11 percent, what percent of
the total bond value does the repayment of principal represent?
Assume interest payments are annual. Use Appendix B and Appendix D
for an approximate answer but calculate your final answer using the
formula and financial calculator methods. (Do...

Heather Smith is considering a bond investment in Locklear
Airlines. The $1,000 par value bonds have a quoted annual interest
rate of 10 percent and the interest is paid semiannually. The yield
to maturity on the bonds is 12 percent annual interest. There are
15 years to maturity. Compute the price of the bonds based on
semiannual analysis. Use Appendix B and Appendix D for an
approximate answer but calculate your final answer using the
formula and financial calculator methods....

Applied Software has a $1,000 par value bond outstanding that
pays 10 percent interest with annual payments. The current yield to
maturity on such bonds in the market is 8 percent. Use Appendix B
and Appendix D. Appendix just has the calculateed numers. I can't
put it here, calculate it yourself. Compute the price of the bonds
for these maturity dates: (Round "PV Factor" to 3 decimal places.
Do not round intermediate calculations. Round the final answers to
2 decimal...

Lance Whittingham IV specializes in buying deep discount bonds.
These represent bonds that are trading at well below par value. He
has his eye on a bond issued by the Leisure Time Corporation. The
$1,000 par value bond pays 6 percent annual interest and has 15
years remaining to maturity. The current yield to maturity on
similar bonds is 14 percent.
a. What is the current price of the bonds? Use Appendix B and
Appendix D for an approximate answer...

The Lone Star Company has $1,000 par value bonds outstanding at
10 percent interest. The bonds will mature in 20 years. Compute the
current price of the bonds if the present yield to maturity
is:
a) 6 percent
b) 9 percent
c) 13 percent
Please show ALL the work for EACH problem.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 8 minutes ago

asked 24 minutes ago

asked 28 minutes ago

asked 28 minutes ago

asked 32 minutes ago

asked 32 minutes ago

asked 32 minutes ago

asked 56 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago