Applied Software has $1,000 par value bonds outstanding at 17 percent interest.

Question

Applied Software has $1,000 par value bonds outstanding at 17 percent interest. The bonds will mature in 20 years. Use Appendix B and Appendix 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 to 2 decimal places. Omit the "$" sign in your response):

        

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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 to 2 decimal places. Omit the "$" sign in your response):

Applied Software has $1,000 par value bonds outstanding at 17 percent interest. The bonds will mature in 20 years. Use Appendix B and Appendix D. Compute the current price of the bonds if the present yield to maturity is (Round "PV Factor" to 3 decimal places, intermediate and final answers to 2 decimal places. Omit the "$" sign in your response):

Explanation / Answer

a) 1,000*.17*7.469 +1,000*.104= 1,373.73

B) 1,000*.17*6.623 +1,000*.073= 1,198.81

c) This should be just par value, 1,000 (to check 1,000*.17*5.628 +1,000*.043= 999.76 due to rounding in the tables)

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