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Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading...

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Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well below par value. He has his eye on a bond issued by the Leisure Time Corporation. The $1.000 par value bond with semiannual payments has 5 percent: annual interest and has 20 years remaining to maturity. The current yield to maturity on similar bonds is 14 percent. (Round "py Factor" to 3 decimal place. Do not round intermedlate calculations. Round the final anmers to 2 decimal places.) a. What is the current price of the bonds? Use ApRendix B and Appendix D. Current price \$ b. By what percent will the price of the bonds increase between now and maturity? Price increases by a) % c. What is the annual compound rate of growth in the value of the bonds? (Use Appendix. A) Annual compound rate

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