FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please answer column 4 solve

Please how can I calculate column 4 (price next year)
TABLE 2 One-Year Returns on Different-Maturity 10%-Coupon-Rate Bonds When Interest
Rates Rise from 10% to 20%
(1)
(2)
(4)
(5)
(6)
Years to
Initial
Rate of
(3)
Initial
Price
Rate of
Сapital
Maturity
When Bond
Is Purchased
Current
Next
Return
(col (2) +
col (5)] (%)
Yield
Price
Year*
Gain
(%)
(S)
(S)
(%)
30
10
1,000
503
-49.7
-39.7
20
10
1,000
516
-48.4
-38.4
10
10
1,000
597
-40.3
-30.3
10
1,000
741
-25.9
-15.9
2
10
1,000
917
-8.3
+1.7
10
1,000
1,000
0.0
+10.0
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Transcribed Image Text:Please how can I calculate column 4 (price next year) TABLE 2 One-Year Returns on Different-Maturity 10%-Coupon-Rate Bonds When Interest Rates Rise from 10% to 20% (1) (2) (4) (5) (6) Years to Initial Rate of (3) Initial Price Rate of Сapital Maturity When Bond Is Purchased Current Next Return (col (2) + col (5)] (%) Yield Price Year* Gain (%) (S) (S) (%) 30 10 1,000 503 -49.7 -39.7 20 10 1,000 516 -48.4 -38.4 10 10 1,000 597 -40.3 -30.3 10 1,000 741 -25.9 -15.9 2 10 1,000 917 -8.3 +1.7 10 1,000 1,000 0.0 +10.0
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