Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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pt 1
Exodus Limousine Company has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 40 years
with annual payments. Use Appendix B and Appendix D.
Compute the current price of the bonds if the current yield to maturity is: (Round "PV Factor" to 3 decimal places. Do not
round intermediate calculations. Round the final answers to 2 decimal places.)
a. 3 percent
b. 13 percent
pt 2:
o
Price of the
bond
$
5
Show Transcribed Text
Ĉ
Exodus Limousine Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 30 years
with annual payments.
If the current yield to maturity is 15 percent, what percent of the total bond value does the repayment of principal represent?
Use Appendix B and Appendix D. (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round
the final answer to 2 decimal places.)
Principal repayment
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Transcribed Image Text:pt 1 Exodus Limousine Company has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 40 years with annual payments. Use Appendix B and Appendix D. Compute the current price of the bonds if the current yield to maturity is: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. 3 percent b. 13 percent pt 2: o Price of the bond $ 5 Show Transcribed Text Ĉ Exodus Limousine Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 30 years with annual payments. If the current yield to maturity is 15 percent, what percent of the total bond value does the repayment of principal represent? Use Appendix B and Appendix D. (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Principal repayment
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