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What is the market price of a $1,000, 8 percent bond paying a semiannual coupon if comparable market interest rates rise to 10 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.) Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places.

What is the market price of a $1,000, 8 percent bond paying a semiannual coupon if comparable market interest rates rise to 10 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.) Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places.

Essentials Of Investments
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
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Appendix A-2 n 1% 2% 3% 4% 14% 15% 5% 6% 0.9615 0.9524 0.9434 7% 0.9346 16% 17% 18% 19% 20% 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 1 0.9901 0.9804 0.9709 0.7695 0.7561 0.7432 0.7305 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.9238 0.8885 0.8548 4 0.9610 5 0.9515 6 0.9420 0.8880 0.9057 0.8626 0.82 19 0.8375 0.7903 0.9327 0.8706 0.8131 0.7599 7 8 0.9235 0.9143 9 0.9053 0.8963 12 0.8874 13 0.8787 14 0.8700 0.8613 0.8528 17 0.8444 15 16 8% 9% 10% 11% 12% 13% 0.9259 0.9174 0.9091 0.9009 0.89 29 0.8850 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7182 0.7062 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.71 18 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.63 55 0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.54 28 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 0.1615 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 0.1346 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.1252 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.0930 0.7142 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0802 0.7002 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.1987 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.0443 0.03 70 0.1502 0.1228 0.1007 0.0826 0.0680 0.0560 0.0462 0.0382 0.03 16 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 0.03 29 0.0270 0.2470 0.1971 0.1577 0.1264 0.1015 0.0817 0.0659 0.0532 0.0431 0.0349 0.0284 0.0231 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.2198 0.1722 0.1352 0.1064 0.0839 0.0663 0.0525 0.04 17 0.0331 0.0264 0.2074 0.1609 0.1252 0.0976 0.0763 0.0597 0.0469 0.0230 0.0182 0.0144 0.1956 0.1504 0.1159 0.0895 0.0693 0.0538 0.0419 0.03 26 0.0255 0.0200 0.0157 0.0123 0.1846 0.1406 0.1073 0.0822 0.0630 0.0485 0.0374 0.0289 0.0224 0.0174 0.0135 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0972 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0543 0.0339 0.0213 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0541 0.1299 0.1163 0.1042 0.0935 0.1110 0.0985 0.0876 0.0779 0.0949 0.0835 0.0736 0.0649 0.0811 0.0708 0.06 18 0.0693 0.0600 0.0520 0.0592 0.0508 0.0437 0.0506 0.0431 0.0367 0.0365 0.0309 0.0451 0.6050 0.5134 0.4363 0.3714 0.5874 0.5703 18 0.8360 0.0376 19 0.8277 0.6864 0.4936 0.4155 0.3503 0.4746 0.3957 0.3305 0.2765 0.2317 0.3769 0.2584 20 0.8195 0.6730 0.5537 0.3118 0.0308 0.4564 0.4388 21 0.8114 0.5375 0.2942 0.2415 0.6598 22 0.8034 0.6468 23 0.7954 0.6342 0.5067 0.5219 0.42 20 0.2775 0.2257 0.1839 0.0262 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.0222 0.0183 0.0188 0.0154 0.0160 0.0129 0.0211 0.0169 0.0135 0.0109 0.0115 0.0091 0.0097 0.0077 0.0369 24 0.7876 0.6217 0.4919 0.3901 0.3101 25 0.7798 0.6095 0.4776 0.3751 0.2953 26 0.7720 0.5976 0.4637 0.3607 0.2812 27 0.7644 0.5859 0.4502 0.3468 0.2678 0.7568 0.5744 0.4371 0.3335 0.2551 0.7493 0.5631 0.4243 0.3207 0.2429 0.7419 0.5521 0.4120 0.3083 0.6717 0.2083 50 0.6080 0.3715 0.2281 0.1407 0.0291 28 29 30 0.2314 0.0105 0.0082 0.0064 0.0090 0.0070 0.0054 0.0019 0.0013 0.0010 0.0004 0.0003 0.0002 40 0.4529 0.3066 0.1420 0.0872 Present Value of a Single Amount ($1) (Used to Compute the Discounted Present Value of Some Known Future Single Lump Sum) 10 11 0.3589 0.3418 0.0259 0.0218 0.0313 0.0261 0.0217 0.0181 0.0151 0.0126 0.0105 0.0087 0.0073 0.0061 0.0051 0.0042 0.0007 0.0001
Transcribed Image Text:Appendix A-2 n 1% 2% 3% 4% 14% 15% 5% 6% 0.9615 0.9524 0.9434 7% 0.9346 16% 17% 18% 19% 20% 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 1 0.9901 0.9804 0.9709 0.7695 0.7561 0.7432 0.7305 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.9238 0.8885 0.8548 4 0.9610 5 0.9515 6 0.9420 0.8880 0.9057 0.8626 0.82 19 0.8375 0.7903 0.9327 0.8706 0.8131 0.7599 7 8 0.9235 0.9143 9 0.9053 0.8963 12 0.8874 13 0.8787 14 0.8700 0.8613 0.8528 17 0.8444 15 16 8% 9% 10% 11% 12% 13% 0.9259 0.9174 0.9091 0.9009 0.89 29 0.8850 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7182 0.7062 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.71 18 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.63 55 0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.54 28 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 0.1615 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 0.1346 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.1252 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.0930 0.7142 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0802 0.7002 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.1987 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.0443 0.03 70 0.1502 0.1228 0.1007 0.0826 0.0680 0.0560 0.0462 0.0382 0.03 16 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 0.03 29 0.0270 0.2470 0.1971 0.1577 0.1264 0.1015 0.0817 0.0659 0.0532 0.0431 0.0349 0.0284 0.0231 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.2198 0.1722 0.1352 0.1064 0.0839 0.0663 0.0525 0.04 17 0.0331 0.0264 0.2074 0.1609 0.1252 0.0976 0.0763 0.0597 0.0469 0.0230 0.0182 0.0144 0.1956 0.1504 0.1159 0.0895 0.0693 0.0538 0.0419 0.03 26 0.0255 0.0200 0.0157 0.0123 0.1846 0.1406 0.1073 0.0822 0.0630 0.0485 0.0374 0.0289 0.0224 0.0174 0.0135 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0972 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0543 0.0339 0.0213 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0541 0.1299 0.1163 0.1042 0.0935 0.1110 0.0985 0.0876 0.0779 0.0949 0.0835 0.0736 0.0649 0.0811 0.0708 0.06 18 0.0693 0.0600 0.0520 0.0592 0.0508 0.0437 0.0506 0.0431 0.0367 0.0365 0.0309 0.0451 0.6050 0.5134 0.4363 0.3714 0.5874 0.5703 18 0.8360 0.0376 19 0.8277 0.6864 0.4936 0.4155 0.3503 0.4746 0.3957 0.3305 0.2765 0.2317 0.3769 0.2584 20 0.8195 0.6730 0.5537 0.3118 0.0308 0.4564 0.4388 21 0.8114 0.5375 0.2942 0.2415 0.6598 22 0.8034 0.6468 23 0.7954 0.6342 0.5067 0.5219 0.42 20 0.2775 0.2257 0.1839 0.0262 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.0222 0.0183 0.0188 0.0154 0.0160 0.0129 0.0211 0.0169 0.0135 0.0109 0.0115 0.0091 0.0097 0.0077 0.0369 24 0.7876 0.6217 0.4919 0.3901 0.3101 25 0.7798 0.6095 0.4776 0.3751 0.2953 26 0.7720 0.5976 0.4637 0.3607 0.2812 27 0.7644 0.5859 0.4502 0.3468 0.2678 0.7568 0.5744 0.4371 0.3335 0.2551 0.7493 0.5631 0.4243 0.3207 0.2429 0.7419 0.5521 0.4120 0.3083 0.6717 0.2083 50 0.6080 0.3715 0.2281 0.1407 0.0291 28 29 30 0.2314 0.0105 0.0082 0.0064 0.0090 0.0070 0.0054 0.0019 0.0013 0.0010 0.0004 0.0003 0.0002 40 0.4529 0.3066 0.1420 0.0872 Present Value of a Single Amount ($1) (Used to Compute the Discounted Present Value of Some Known Future Single Lump Sum) 10 11 0.3589 0.3418 0.0259 0.0218 0.0313 0.0261 0.0217 0.0181 0.0151 0.0126 0.0105 0.0087 0.0073 0.0061 0.0051 0.0042 0.0007 0.0001
Market Price What is the market price of a $1,000, 8 percent bond paying a semiannual coupon if comparable market interest rates rise to 10 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.) Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places. $
Transcribed Image Text:Market Price What is the market price of a $1,000, 8 percent bond paying a semiannual coupon if comparable market interest rates rise to 10 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.) Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places. $
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