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Exodus Limousine Company has $1,000 par value bonds outstanding at 19 percent interest. The bonds...

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Accounting

Exodus Limousine Company has $1,000 par value bonds outstanding at 19 percent interest. The bonds will mature in 40 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the percent yield to maturity is: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)

a. Bond Price for 5% YTM

b. Bond Price for 6% YTM

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