Katie Pairy Fruits Incorporated has a $3,000 22-year bond outstanding with a nominal yield of...
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Katie Pairy Fruits Incorporated has a $3,000 22-year bond outstanding with a nominal yield of 15 percent (coupon equals 15% $3,000 = $450 per year). Assume that the current market required interest rate on similar bonds is now only 12 percent. 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 bond. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual. Find the present value of 3 percent $3,000 (or $90) for 22 years at 12 percent. The $90 is assumed to be an annual
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