16 May QuestionRest attched in the file total 34 question1 Problem 10-2 Bond value [LO3]
Question
Rest attched in the file total 34 question
1 Problem 10-2 Bond value [LO3]
| Applied Software has $1,000 par value bonds outstanding at 20 percent interest. The bonds will mature in 15 years. UseAppendix BandAppendix D. |
| Compute the current price of the bonds if the present yield to maturity is(Round “PV Factor” to 3 decimal places, intermediate and final answers to2 decimal places. Omit the “$” sign in your response): |
| Price of the bond |
|
| (a) 10 percent | $ |
| (b) 15 percent | $ |
| (c) 12 percent | $ |
|
|
2.
value:
1.00 points
Problem 10-4 Bond value [LO3]
| Barry’s Steroids Company has $1,000 par value bonds outstanding at 14 percent interest. The bonds will mature in 40 years. |
| If the percent yield to maturity is 11 percent, what percent of the total bond value does the repayment of principal represent? UseAppendix BandAppendix D.(Round intermediate calculations to 2 decimal places, “PV Factor” and final answer to 3 decimal places. Omit the “%” sign in your response.) |
| Principal repayment | % |
3.
value:
1.00 points
Problem 10-5 Bond value [LO3]
| Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 19 percent annual interest. The current yield to maturity on such bonds in the market is 11 percent. UseAppendix BandAppendix D. |
| Compute the price of the bonds for these maturity dates(Round “PV Factor” to 3 decimal places, intermediate and final answers to 2 decimal places. Omit the “$” sign in your response): |
| Price of the bond |
|
| (a) 25 years | $ |
| (b) 15 years | $ |
| (c) 4 years | $ |
|
|
rev: 04_27_2012
5.
value:
1.00 points
Problem 10-11 Effect of maturity on bond price [LO3]
| Refer toTable 10-2 |
| (a) | Assume the interest rate in the market (yield to maturity) goes down to 8 percent for the 10 percent bonds. Using column 2, indicate what the bond price will be with a 10-year, a 20-year, and a 30-year time period.(Round “PV Factor” to 3 decimal places, intermediate calculations and final answers to 2 decimal places. Omit the “$” sign in your response.) |
| Maturity | Bond price |
| 10 Years | $ |
| 20 years | |
| 30 years | |
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