Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. help katle pairy fruits inc. has a $3,500 14-year

Help Katle Pairy Fruits Inc. has a $3,500 14-year bond outstanding with a nominal yleld...

90.2K

Verified Solution

Question

Accounting

image
Help Katle Pairy Fruits Inc. has a $3,500 14-year bond outstanding with a nominal yleld of 16 percent (coupon equals 16% $3,500 - $560 per year). Assume that the current market required interest rate on similar bonds is now only 12 percent. Use Appendix 8 and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods a. Compute the current price of the bond. (Do not round Intermediate calculation. Round your final answer to 2 decimal places. Assume Interest payments are annual) Cunt price of the bond b. Find the present value of 4 percent $3,500 for $140) for 14 years at 12 percent. The $140 is assumed to be an annual payment. Add this value to $3,500. (Do not round Intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual) Privalum MacBook Air 4 288 POPA # 3 $ 4 & 7 8 9 0 6 2 5 O W E U R T Y T S G D F J K K H

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students