Use the following tables to calculate the present value of a $487,000 @ 5%, 5-year bond that pays $24,350 interest annually, if the market rate of interest is 10%. Round to the nearest dollar.Present Value of $1Present Value of Annuity of $1Periods5 %6 %7 %10 %Periods5 %6 %7 %10 %1.95238.94340.93458.909091.95238.94340.93458.909092.90703.89000.87344.8264521.859411.833391.808021.735543.86384.83962.81630.751312.723252.673012.624322.486854.82270.79209.76290.6830143.545953.465113.387213.169875.78353.74726.71299.6209254.329484.212364.100203.79079.74622.70496.66634.5644765.075694.917324.766544.355267.71068.66506.62275.51316 |75.786375.582385.389294.868428.67684.62741.58201.4665186.463216.209795.971305.334939..64461.59190.54393.424109.7.107826.801696.515235.7590210.61391.55839.50835.38554107.721737.360097.023586.14457

Present Value of bond is calculated by the present value of annual interest payment and present…

Use the following tables to calculate the present value of a $487,000 @ 5%, 5-year bond that pays $24,350 interest annually, if the market rate of interest is 10%. Round to the nearest dollar. Present Value of $1 Present Value of Annuity of $1 Periods 5 % 6 % 7 % 10 % : Periods 5 % 6 % 7 % 10 % 1 .95238 .94340 .93458 .90909 : 1 .95238 .94340 .93458 .90909 2 .90703 .89000 .87344 .82645 : 2 1.85941 1.83339 1.80802 1.73554 3 .86384 .83962 .81630 .75131 : 3 2.72325 2.67301 2.62432 2.48685 4 .82270 .79209 .76290 .68301 4 3.54595 3.46511 3.38721 3.16987 5 .78353 .74726 .71299 .62092 : 5 4.32948 4.21236 4.10020 3.79079 6. .74622 .70496 .66634 .56447 : 6. 5.07569 4.91732 4.76654 4.35526 7 .71068 .66506 .62275 .51316 7 5.78637 5.58238 5.38929 4.86842 8 .67684 .62741 .58201 .46651 8 6.46321 6.20979 5.97130 5.33493 .64461 .59190 .54393 .42410 : 9 7.10782 6.80169 6.51523 5.75902 10 .61391 .55839 .50835 .38554 : 10 7.72173 7.36009 7.02358 6.14457

Use the following tables to calculate the present value of a $487,000 @ 5%, 5-year bond that pays $24,350 interest annually, if the market rate of interest is 10%. Round to the nearest dollar. Present Value of $1 Present Value of Annuity of $1 Periods 5 % 6 % 7 % 10 % : Periods 5 % 6 % 7 % 10 % 1 .95238 .94340 .93458 .90909 : 1 .95238 .94340 .93458 .90909 2 .90703 .89000 .87344 .82645 : 2 1.85941 1.83339 1.80802 1.73554 3 .86384 .83962 .81630 .75131 : 3 2.72325 2.67301 2.62432 2.48685 4 .82270 .79209 .76290 .68301 4 3.54595 3.46511 3.38721 3.16987 5 .78353 .74726 .71299 .62092 : 5 4.32948 4.21236 4.10020 3.79079 6. .74622 .70496 .66634 .56447 : 6. 5.07569 4.91732 4.76654 4.35526 7 .71068 .66506 .62275 .51316 7 5.78637 5.58238 5.38929 4.86842 8 .67684 .62741 .58201 .46651 8 6.46321 6.20979 5.97130 5.33493 .64461 .59190 .54393 .42410 : 9 7.10782 6.80169 6.51523 5.75902 10 .61391 .55839 .50835 .38554 : 10 7.72173 7.36009 7.02358 6.14457

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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Use the following tables to calculate the present value of a $608,000 @ 6%, 6-year bond that pays $36,480 interest annually, if the market rate of interest is 7%. Round to the nearest dollar. Present Value of $1 ¦ Present Value of Annuity of $1 Periods 5 % 6 % 7 % 10 % ¦ Periods 5 % 6 % 7 % 10 % 1 .95238 .94340 .93458 .90909 ¦ 1 .95238 .94340 .93458 .90909 2 .90703 .89000 .87344 .82645 ¦ 2 1.85941 1.83339 1.80802 1.73554 3 .86384 .83962 .81630 .75131 ¦ 3 2.72325 2.67301 2.62432 2.48685 4 .82270 .79209 .76290 .68301 ¦ 4 3.54595 3.46511 3.38721 3.16987 5 .78353 .74726 .71299 .62092 ¦ 5 4.32948 4.21236 4.10020 3.79079 6 .74622 .70496 .66634 .56447 ¦ 6 5.07569 4.91732 4.76654 4.35526 7 .71068 .66506 .62275 .51316 ¦ 7 5.78637 5.58238 5.38929 4.86842 8 .67684 .62741 .58201 .46651 ¦ 8 6.46321…
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