A zero coupon bond will be worth $13.000 when à matures and is redeemed alter 15 years How much would an investor be willing to pay now for this bond it a 3 por ysur yield desked? Click the lcon to view the Interest and annuity table for discrete compounding when / 3% per year The current worth of the bond ia $ (Round to the nearest dollar)

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 4.8P
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Azerm coupon bond wilt be worth $13.000 when it matures and is redeemed after 15 years How much would an investor be willing to pay now for this bond if a 3% po year yie duste7
Click the icon to view the interest and annuity table for discrete compounding when/ 3% per year
The current worth of the bond in $(Round to the nearest dallac)
Transcribed Image Text:Azerm coupon bond wilt be worth $13.000 when it matures and is redeemed after 15 years How much would an investor be willing to pay now for this bond if a 3% po year yie duste7 Click the icon to view the interest and annuity table for discrete compounding when/ 3% per year The current worth of the bond in $(Round to the nearest dallac)
Capital
Compound
Amount
Factor
Compound
Amount
Factor
Sinking
Fund
Factor
me nearest dollar.)
Present
Worth Factor
Recovery
Factor
Present
Worth Factor
To Find P
To Find A
To Find A
To Find F
Given P
F/P
To Find P
Given F
To Find F
Given A
FIA
Given A
Given F
Given P
N.
P/F
PIA
A/F
A/P
1.0300
0.9709
1.0000
0.9709
1.0000
1.0300
1.9135
0.4926
0.5226
2.0300
3.0909
4.1836
1.0609
0.9426
1.0927
0.9151
2.8286
0.3235
0.3535
4
1.1255
0.8885
3.7171
0.2390
0.2690
1.1593
0.8626
5.3091
4.5797
0.1884
0.2184
6
1.1941
0.8375
6.4684
5.4172
0.1546
0.1846
1.2299
0.8131
7.6625
6.2303
0.1305
0.1605
8
1.2668
0.7894
8.8923
7.0197
0.1125
0.1425
7.7861
8.5302
9.2526
9
1.3048
0.7664
10.1591
0.0984
0.1284
10
1.3439
0.7441
11.4639
0.0872
0.1172
11
1.3842
0.7224
12.8078
0.0781
0.1081
12
1.4258
0.7014
14.1920
9.9540
0.0705
0.1005
13
1.4685
0.6810
15.6178
17.0863
10.6350
0.0640
0.0585
0.0538
0.0940
14
1.5126
0.6611
11.2961
0.0885
0.0838
15
1.5580
0.6419
18.5989
11.9379
16
1.6047
0.6232
20.1569
12.5611
0.0496
0.0460
0.0796
17
1.6528
0.6050
21.7616
13.1661
0.0760
Print
Done
BOX.
Transcribed Image Text:Capital Compound Amount Factor Compound Amount Factor Sinking Fund Factor me nearest dollar.) Present Worth Factor Recovery Factor Present Worth Factor To Find P To Find A To Find A To Find F Given P F/P To Find P Given F To Find F Given A FIA Given A Given F Given P N. P/F PIA A/F A/P 1.0300 0.9709 1.0000 0.9709 1.0000 1.0300 1.9135 0.4926 0.5226 2.0300 3.0909 4.1836 1.0609 0.9426 1.0927 0.9151 2.8286 0.3235 0.3535 4 1.1255 0.8885 3.7171 0.2390 0.2690 1.1593 0.8626 5.3091 4.5797 0.1884 0.2184 6 1.1941 0.8375 6.4684 5.4172 0.1546 0.1846 1.2299 0.8131 7.6625 6.2303 0.1305 0.1605 8 1.2668 0.7894 8.8923 7.0197 0.1125 0.1425 7.7861 8.5302 9.2526 9 1.3048 0.7664 10.1591 0.0984 0.1284 10 1.3439 0.7441 11.4639 0.0872 0.1172 11 1.3842 0.7224 12.8078 0.0781 0.1081 12 1.4258 0.7014 14.1920 9.9540 0.0705 0.1005 13 1.4685 0.6810 15.6178 17.0863 10.6350 0.0640 0.0585 0.0538 0.0940 14 1.5126 0.6611 11.2961 0.0885 0.0838 15 1.5580 0.6419 18.5989 11.9379 16 1.6047 0.6232 20.1569 12.5611 0.0496 0.0460 0.0796 17 1.6528 0.6050 21.7616 13.1661 0.0760 Print Done BOX.
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