Question

Exercise 6-7 What would you pay for a $160,000 debenture bond that matures in 15 years and pays $8,000 a year in interest if you wanted to earn a yield of: Click here to view factor tables

3%? (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 $enter a dollar amount to pay rounded to 0 decimal places LINK TO TEXT

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 $enter a dollar amount to pay rounded to 0 decimal places LINK TO TEXT

5%? (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 $enter a dollar amount to pay rounded to 0 decimal places

Answer 1

3%
	Amount	PV factor 3%	Present value
Interest	8000	11.93794	95504
Principal	160000	0.64186	102698
Total			198201
Amount to Pay	198201	or 198202
4%
	Amount	PV factor 4%	Present value
Interest	8000	11.11839	88947
Principal	160000	0.55526	88842
Total			177789
Amount to Pay	177789
5%
	Amount	PV factor 5%	Present value
Interest	8000	10.37966	83037
Principal	160000	0.48102	76963
Total			160000
Amount to Pay	160000