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Problem 10-1 (Algo) Bond value [LO10-3] The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 25 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual. Answer is complete but not entirely correct. Bond Price a. 6 percent $ 1,384.71 b. 9 percent $ 1,012.05 x c. 13 percent $ EA 726.20 x

Problem 10-1 (Algo) Bond value [LO10-3] The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 25 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual. Answer is complete but not entirely correct. Bond Price a. 6 percent $ 1,384.71 b. 9 percent $ 1,012.05 x c. 13 percent $ EA 726.20 x

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 9P: Bond Valuation and Interest Rate Risk The Garraty Company has two bond issues outstanding. Both...
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Problem 10-1 (Algo) Bond value [LO10-3] The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 25 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual. Answer is complete but not entirely correct. Bond Price a. 6 percent $ 1,384.71 b. 9 percent $ 1,012.05 x c. 13 percent $ EA 726.20 x
Transcribed Image Text:Problem 10-1 (Algo) Bond value [LO10-3] The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 25 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual. Answer is complete but not entirely correct. Bond Price a. 6 percent $ 1,384.71 b. 9 percent $ 1,012.05 x c. 13 percent $ EA 726.20 x
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