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Quantitative Problem: Potter Industries has a bond issue outstanding with an annual coupon of 6% and...

Quantitative Problem: Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 7.2%, what is the value of the bond? Do not round intermediate calculations. Round your answer to the nearest cent.

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Quantitative Problem: Potter Industries has a bond issue outstanding with a 6% coupon rate with semiannual payments of $30, and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 7.2%, what is the value of the bond? Do not round intermediate calculations. Round your answer to the nearest cent.

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COUPON RATE 6.00% NPER 10 (years to maturity) PMT 60 (face value x coupon rate) FACE VALUE $ 1,000.00 YIELD 7.20% PRICE = PV = $916.49 -PV(rate,nper,pmt,fv) -pv 7.2%,10,60,1000)

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