Question

Current Attempt in Progress What would you pay for a $125,000 debenture bond that matures in 15 years and pays $6,250 a year in interest if you wanted to earn a yield of: Click here to view factor tables 2%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Amount to Pay $ e Textbook and Media 3%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Amount to Pay $ e Textbook and Media 4%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount to Pay $ e Textbook and Media

Answer 1

2%
	Amount	PV factor 2%	Present value
Interest	6250	12.84926	80308
Principal	125000	0.74301	92876
Total			173184
Amount to pay	173184
3%
	Amount	PV factor 3%	Present value
Interest	6250	11.93794	74612
Principal	125000	0.64186	80233
Total			154845
Amount to pay	154845
4%
	Amount	PV factor 4%	Present value
Interest	6250	11.11839	69490
Principal	125000	0.55526	69408
Total			138897
Amount to pay	138897	or 138898