#### Description of this paper

##### 7. value: 10.00 points The Lone Star Company nas \$1 ,000 par-(Answered)

Description

Step-by-step Instant Solution

Question

Please see attachment for question 7 for my connect assignment.

?

7.

value:

10.00 points

The Lone Star Company nas \$1 ,000 par value bonds outstanding at 10 percent interest. The bon&lt;!s will

mature in 18 years. use Aooendix B ano Apoendix 0.

Compute the current price of the bonds if the present yield to maturity is (Round &quot;PV Factof' to 3 decimal

Price of the

bond

Appendix D

r resent value of an annuity of \$1 , PVIFA

Percent

Period

1%

5 ......... .

6 .... ? .....

7 ......... .

0.990

1.970

2.941

3 .902

4.853

5 .795

6.728

2%

0.980

1.942

2.884

3.808

4.713

5.601

6.472

3%

0.971

1.913

2.829

3.717

4.580

5.417

6.230

4%

0.962

1.886

2.775

3.630

4.452

5242

8 ......... .

7.652

7.325

7.020

9.......... 8.566

10.......... 9.471

11 . . . . . . . . . . 10.368

12.......... 11255

13..... . .... 12.134

14.......... 13.004

15......... . 13.865

16.......... 14.718

17.......... 15.562

18.......... 16.398

19......... . 17.226

20..... ? . . . . 18.046

25.......... 22.023

8.162

8.983

9.787

10.575

11.348

12.106

12.849

13.578

14.292

14.992

7.786

8.530

9.253

9.954

30.......... 25.808

40..... . ....

50..........

1 ......?...

2 ......... .

3 ......... .

4 .... ? .?...

32.835

39.1 96

QO/o

9%

0.917

1.759

2.531

3.240

3.890

4.486

6.002

5.582

5.389

5.206

6.733

6.463

6.210

5.971

5.747

7.108

12.085

12.462

14.094

6.802

7.360

7.887

8.384

8.853

9.295

9.712

10.106

10.477

10.828

11.158

11.470

12.783

6.515

7.024

7.499

7.943

8.358

8.745

9.108

9.447

9.763

10.059

10.336

10.594

11.654

6.247

10.635

11.296

11.938

12.561

13.166

13.754

14.324

14.877

17.413

7.435

8.11 1

8.760

9.385

9.986

10.563

11.118

11.652

12.166

12.659

13.134

13.590

15.622

6.710

7.139

7.536

7.904

8.244

8.559

8.851

9.122

9.372

9.604

9.818

10.675

22.396

19.600

17.292

19.793

21.482

13.765

15.046

15.762

11.258

23.11 5

25.730

15.372

17.159

18256

12.409

27.355

31.424

13.332

13.801

11.925

12.233

15.678

16.351

19.523

7.722

8.306

8.863

9.394

9.899

10.380

10.838

11 274

11 .690

7%

0.935

1.808

2.624

3.387

4.100

4.767

0.926

1.783

2.577

3.312

3.993

4.623

5%

0.952

1.859

2.723

3.546

4.329

5.076

5.786

6%

0.943

1.833

2.673

3.465

4.212

4.917

11 %

0.901

1.713

2.444

3.102

3.696

4.231

12%

0.893

1.690

2.402

3.037

3.605

4.111

5.033

10%

0.909

1.736

2.487

3.170

3.791

4.355

4.868

4.712

4.564

5.535

5.335

5.146

4.968

5.995

6.418

6.805

7.161

5.759

6.145

6.495

6.814

7.103

7.367

7.606

7.824

8.022

8201

5.537

5.889

6.207

6.492

5.328

5.650

5.938

6.194

8.365

8.514

9.077

6.750

6.982

7.191

7.379

7.549

7.702

7.839

7.963

8.422

6.424

6.628

6.811

6.974

7.120

7.250

7.366

7.469

7.843

10.274

9.427

8.694

8.055

10.757

10.962

9.779

9.915

8.951

9.042

8.244

8.304

7.487

7.786

8.061

8.313

8.544

8.756

8.950

9.129

9.823

~Ii D (conduded)

!Present value of an annuity of \$1

Percent

Period

1 ......... .

2 ?.........

3 ......... .

4 ......... .

5 ......... .

13%

0.885

1.668

2.361

2.974

3.517

6 ......... .

7 ......... .

8 ......... .

9 ......... .

10 ..... ? . ?. .

11 .......?..

12 ......... .

13 ....... ?. .

14 .......?..

15 .......?..

16 .......?..

17 ..... ? .?..

3.998

4.423

4 .799

18 ....... ? ..

19 ......... .

20 .....?.?..

25 .......?..

30 ....... ? ..

40 ....... ?. .

50 .......?..

5.132

5.426

5.687

5.91 8

6 .122

6.302

6.462

6.604

6.729

6.840

6.938

7 .025

7.330

7.496

7.634

7.675

14%

0.877

1.647

2.322

2.914

3.433

3.889

4.288

4.639

4.946

5.216

5.453

5.660

5.842

6.002

6.142

6.265

6.373

6.467

6.550

6.623

6.873

7.003

7.105

7.133

15%

0.870

1.626

2283

2.855

3.352

3.784

4.160

4.487

4.772

5.019

5234

5.421

5.583

5.724

5.847

5.954

6.047

6.128

6.198

6259

6.464

6.566

6.642

6.661

16%

0.862

1.605

2.246

2.798

3.274

3.685

4.039

4.344

4.607

4.833

5.029

5.197

5.342

5.468

5.575

5.668

5.749

5.818

5.877

5.929

6.097

6.177

6.233

6.246

17%

0.855

1.585

2.210

2.743

3.199

3.589

3.922

4.207

4.451

4.659

4.836

4.988

5.118

5.229

5.324

5.405

5.475

5.534

5.584

5.628

5.766

5.829

5.871

5.880

20%

0.833

1.528

2.106

2.589

2.991

18%

19%

0.847

1.566

2.174

2.690

3.127

3.498

3.812

4.078

4.303

4.494

4.656

4.793

4.910

5.008

5.092

5.162

5222

5273

5.316

5.353

5.467

5.517

5.548

5.554

0.840

1.547

2.140

2.639

3.058

3.410

3.706

3.954

4.163

4.339

4.486

4.611

4.715

4.802

4.876

4.938

4.988

5.033

5.070

5.101

3.326

3.605

3.837

4.031

4.192

4.327

4.439

4.533

4.611

4.675

4.730

4.775

4.812

4.843

4.870

5.195

5.235

5.258

5.262

4.948

4.979

4.997

4.999

25%

0.800

1.440

1.952

2.362

2.689

2.951

3.161

3.329

3.463

3.571

3.656

3.725

3.780

3.824

3.859

3.887

3.910

3.928

3.942

3.954

3.985

3.995

3.999

4.000

30%

0.769

1.361

1.816

2.166

2.436

2.643

2.802

2.925

3.019

3.092

3.147

3.190

3223

3249

3.268

3283

3295

3.304

3.311

3.316

3.329

3.332

3.333

3.333

3501o

0.741

1289

1.696

1.997

2.220

2.385

2.508

2.598

2.665

2.715

2.752

2.779

2.799

2.814

2.825

2.834

2.840

2.844

2.848

2.850

2.856

2.857

2.857

2.857

40%

0.714

1.224

1.589

1.849

2.035

2.1 68

2.263

2.331

50%

0.667

1.11 1

2.379

2.414

2.438

2.456

2.469

2.478

2.484

2.489

2.492

2.494

2.496

2.497

1.407

1.605

1.737

1.824

1.883

1.922

1.948

1.965

1.977

1.985

1.990

1.993

1.995

1.997

1.998

1.999

1.999

1.999

2.499

2.500

2.500

2.500

2.000

2.000

2.000

2.000

Appendlll-8;~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Present value of \$1 , PVF

PV = FV

[(1+ I)&quot;]

Percent

Period

1 ..??.?...?

2 ..??.?...?

3 ......... .

4 ......... .

5

6

7

8

9

10

......... .

......... .

......... .

......... .

......... .

......... .

11 ..?..?....

12 ......... .

13 ......... .

14 ......... .

15 ......... .

16 ......... .

17 ......... .

18 ......... .

19 ......... .

20 ......... .

25 ......... .

30 ......... .

40 ......... .

50 ......... .

1%

0.990

0.980

0.971

0.961

0.951

0.942

0.933

0.923

0.914

0.905

0.896

0.887

0.879

0.870

0.861

0.853

0.844

0.836

0.828

0.820

0.780

0.742

0.672

0.608

2%

0.980

0.961

0.942

0.924

0.906

0.888

0.871

0.853

0.837

0.820

0.804

0.788

0.773

0.758

0.743

0.728

0.714

0.700

0.686

0.673

0.61 0

0.552

0.453

0.372

3%

0.971

0.943

0.915

0.888

0.863

0.837

0.813

0.789

0.766

0.744

0.722

0.701

0.681

0.661

0.642

0.623

0.605

0.587

0.570

0.554

0.478

0.412

0.307

0.228

4%

0.962

0.925

0.889

0.855

0.822

0.790

0.760

0.731

0.703

0.676

0.650

0.625

0.601

0.577

0.555

0.534

0.51 3

0.494

0.475

0.456

5%

0.952

0.907

0.864

0.823

0.784

0.746

0.711

0.677

0.375

0.308

0.208

0.141

0.295

0.231

0.142

0.087

0.645

0.614

0.585

0.557

0.530

0.505

0.481

0.458

0.436

0.416

0.396

0.377

7%

0.935

0.873

0.816

0.763

0.713

6%

0.943

0.890

0.840

0.792

0.747

0.705

0.665

0.627

0.592

0.558

0.527

0.497

0.469

0.442

0.417

0.394

0.371

0.666

0.623

0.582

0.544

0.508

0.475

0.444

0.415

0.388

0.362

0.339

0.317

0.350

0.331

0.312

0.233

0.174

0.097

0.054

0.296

0.277

0.258

0. 184

0. 131

0.067

0.034

9%

0.917

0.842

0.772

0.708

0.650

0.596

0.547

0.502

0.460

0.422

0.388

0.356

0.326

0.299

0.275

0.252

0.231

0.212

0.194

0.178

0.116

0.075

0.032

0.013

8%

0.926

0.857

0.794

0.735

0.681

0.630

0.583

0.540

0.500

0.463

0.429

0.397

0.368

0.340

0.315

0.292

0.270

0.250

0.232

0.215

0.146

0.099

0.046

0.021

10%

0.909

0.826

0.751

0.683

0.621

0 .564

0.513

0.467

0.424

0.386

0.350

0.319

0290

0263

0239

02 18

0.1 98

0.1 80

0.1 64

0.149

0.092

0.057

0.022

0.009

11 %

0.901

0.812

0.731

0.659

0.593

0.535

0.482

0.434

0.391

0.352

0.317

0.286

0.258

0.232

0.209

0.188

0.170

0.153

0.138

0.124

0.074

0.044

0.015

12%

0.893

0.797

0.712

0.636

0.567

0.507

0.452

0.404

0.361

0.322

0287

0257

0229

0205

0.1 83

0.163

0.146

0.130

0.1 16

0.1 04

0.005

0.003

0.059

0.033

0.011

\&quot;ppendli B (conchidid)

rresent Value of \$1

Percent

Period

1. ....... .

2 ........ .

3 ........ .

4 ?........

5 ........ .

6 ........ .

7 ........ .

8 ........ .

9 ........ .

10 ....... ? .

11 ...?.?. ? ?

12

13

14

15

16

....... ? .

....... ? .

....... ? .

....... ? .

....... ? .

17 ....... ? .

18 ....... ? .

19 ....... ? .

20 ....... ? .

25 ....... ? .

30 ....... ? .

40 ....... ? .

50 ....... ? .

13%

0.885

0.783

0.693

0.61 3

0.543

0.480

0.425

0.376

0.333

0295

0.261

0231

0204

0.1 81

0.160

0.1 41

0.1 25

0.11 1

0.098

0.087

0.047

0.026

0.008

0.002

14%

0.877

0.769

0.675

0.592

0.519

0.456

0.400

0.351

0.300

0.270

0.237

0.208

0.182

0.160

0.140

0.123

0.108

0.095

0.083

0.073

0.038

0.020

0.005

0.001

15%

0.870

0.756

0.658

0.572

0.497

0.432

0.376

0.327

0.284

0.247

0.215

0.187

0.163

0.141

0.123

0.107

0.093

0.081

0.070

0.061

0.030

0.015

0.004

0.001

16%

0.862

0.743

0.641

0.552

0.476

0.410

0.354

0.305

0263

0227

0.1 95

0.1 68

0.145

0.1 25

0.1 08

0.093

0.080

0.069

0.060

0.051

0.024

0.012

0.003

0.001

17%

0.855

0.731

0.624

0.534

0.456

0.390

0.333

0.285

0.243

0.208

0.178

0.152

0.130

0.111

0.095

0.081

0.069

0.059

0.051

0.043

0.020

0.009

0.002

0

18%

0.847

0.718

0.609

0.515

0.437

0.370

0.314

0266

0225

0.191

0.162

0.137

0.116

0.099

0.084

0.071

0.060

0.051

0.043

0.037

0.016

0.007

0.001

0

19%

0.840

0.706

0.593

0.499

0 .419

0 .352

0.296

0.249

0.209

0.176

0 .1 48

0 .124

0 .104

0.088

0.074

0.062

0.052

0.044

0.037

0.031

0.013

0.005

0.001

0

20%

0.833

0.694

0.579

0.482

0.402

0.335

0.279

0.233

0.194

0.162

0.135

0.112

0.093

0.078

0.065

0.054

0.045

0.038

0.031

0.026

0.010

0.004

0.001

0

25%

0.800

0.640

0.512

0.410

0.328

0.262

0.210

0.168

0.134

0.107

0.086

0.069

0.055

0.044

0.035

0.028

0.023

0.018

0.014

0.012

0.004

0.001

0

0

30%

0.769

0 .592

0 .455

0 .350

0269

0207

0.159

0 .123

0 .094

0 .073

0.056

0.043

0.033

0 .025

0 .020

0 .015

0.012

0.009

0.007

0 .005

0 .001

0

0

0

35%

0.741

0.549

0.406

0.301

0.223

0.165

0.122

0.091

0.067

0.050

0.037

0.027

0.020

O.o15

0.011

0.008

0.006

0.005

0.003

0.002

0.001

0

0

0

40%

0.714

0.510

0.364

0.260

0.186

0.133

0.095

0.068

0.048

0.035

0.025

0.018

0.013

0.009

0.006

0.005

0.003

0.002

0.002

0.001

0

0

0

0

50%

0.667

0.444

0296

0.198

0.132

0.088

0.059

0.039

0.026

0.017

0.012

0.008

0.005

0.003

0.002

0.002

0.001

0.001

0

0

0

0

0

0

Paper#9255552 | Written in 27-Jul-2016

Price : \$22