Use the following tables to calculate the present value of a $130,000, 5%, 6-year bond that pays $6,500 ($130,000 × 5%) interest annually, if the market rate of interest is 6%.
Use the following tables to calculate the present value of a $130,000, 5%, 6-year bond that pays $6,500 ($130,000 × 5%) interest annually, if the market rate of interest is 6%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Use the following tables to calculate the
Present Value of $1 at
Periods
|
5%
|
6%
|
7%
|
10%
|
1
|
0.95238
|
0.94340
|
0.93458
|
0.90909
|
2
|
0.90703
|
0.89000
|
0.87344
|
0.82645
|
3
|
0.86384
|
0.83962
|
0.81630
|
0.75131
|
4
|
0.82270
|
0.79209
|
0.76290
|
0.68301
|
5
|
0.78353
|
0.74726
|
0.71299
|
0.62092
|
6
|
0.74622
|
0.70496
|
0.66634
|
0.56447
|
7
|
0.71068
|
0.66506
|
0.62275
|
0.51316
|
8
|
0.67684
|
0.62741
|
0.58201
|
0.46651
|
9
|
0.64461
|
0.59190
|
0.54393
|
0.42410
|
10
|
0.61391
|
0.55839
|
0.50835
|
0.38554
|
Present Value of
Periods
|
5%
|
6%
|
7%
|
10%
|
1
|
0.95238
|
0.94340
|
0.93458
|
0.90909
|
2
|
1.85941
|
1.83339
|
1.80802
|
1.73554
|
3
|
2.72325
|
2.67301
|
2.62432
|
2.48685
|
4
|
3.54595
|
3.46511
|
3.38721
|
3.16987
|
5
|
4.32948
|
4.21236
|
4.10020
|
3.79079
|
6
|
5.07569
|
4.91732
|
4.76654
|
4.35526
|
7
|
5.78637
|
5.58238
|
5.38929
|
4.86842
|
8
|
6.46321
|
6.20979
|
5.97130
|
5.33493
|
9
|
7.10782
|
6.80169
|
6.51523
|
5.75902
|
10
|
7.72173
|
7.36009
|
7.02358
|
6.14457
|
Round your intermediate calculations and final answer to the nearest whole dollar.
$fill in the blank 1
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education