Applying Time Value of Money Concepts
Complete the missing information in the table below. Assume that all bonds pay interest semiannually.

Do not use negative signs with answer.
Round percentages to one decimal place (ex. 0.0345 = 3.5%).
Round all other values to the nearest whole number.

	Annual	Years to	Coupon		Issue
	Yield	Maturity	Rate	Face value	Proceeds
Firm 1	8.00%	15	7.00%	$400,000	$Answer
Firm 2	3.00%	10	0.00%	$Answer	$631,100
Firm 3	6.50%	Answer	5.00%	$500,000	$463,223
Firm 4	Answer %	12	3.50%	$1,000,000	$1,136,452
Firm 5	0.80%	20	2.00%	$600,000	$Answer

Answer rating: 100% (QA)

1 2 3 4 5 6 7 A Firm 1 Firm 2 Firm 3 Firm 4 Firm 5 ... View the full answer