Compute the selling price of 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments.

The annual market rate for these bonds is 8%. Use present value tables B.1 and B.3 in Appendix B.

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TABLE B.1 Present Value of 1 p=1/(1+i) Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.8929 0.8696 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.9091 0.8417 0.8264 0.7972 0.8900 0.7561 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.8734 0.8163 0.7921 0.7629 0.8573 0.7938 0.7722 0.7118 0.6575 4 0.9610 0.9238 0.8885 0.8548 0.7513 0.6830 0.6355 0.8227 0.7835 0.5718 5 0.9515 0.9057 0.8219 0.7473 0.8626 0.8880 0.8375 0.7903 0.6209 0.5674 0.4972 0.7350 0.7084 0.6806 0.6499 0.6302 0.5963 0.5835 0.5470 0.7130 0.6663 6 0.9420 0.7462 0.7050 0.5645 0.5066 7 0.8706 0.4323 0.3759 0.8131 0.7599 0.7107 0.6651 0.6227 0.9327 0.9235 0.5132 0.4523 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4039 0.3269 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4241 0.3606 0.2843 0.4604 0.4224 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.3855 0.3220 0.2472 0.9053 0.8963 0.8874 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.2875 0.2149 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2567 0.1869 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2292 0.1625 14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2046 0.1413 15 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.1827 0.1229 16 0.8528 0.7284 0.5339 0.6232 0.4581 0.3936 0.3387 0.1069 0.2919 0.2519 0.2176 0.1631 0.8444 17 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.0929 0.2703 0.2311 0.1978 0.1456 18 0.8360 0.5874 0.4936 0.4155 0.7002 0.3503 0.2959 0.1300 0.2502 0.0808 0.2120 0.1799 0.0703 0.6864 19 0.4746 0.8277 0.5703 0.3957 0.1161 -0.1945 0.3305 0.1635 0.2317 0.2765 0.3769 0.8195 0:4564 0.1486 0.1037 0.1784 0.2584 0.3118 20 0.6730 0.5537 0.2145 0.0611 0.0304 0.0588 0.1460 0.0923 0.1160 25 0.7798 0.4776 0.3751 0.2330 0.1842 0.2953 0.6095 0.0573 0.0334 0.0151 0.0754 0.1314 0.5521 0.0994 0.3083 0.2314 0.7419 0.4120 0.1741 30 0.0189 0.0075 0.0490 0.0676 0.1301 0.1813 0.3554 0.2534 0.5000 0.0937 35 0.7059 0.0356 0.0318 0.0221 0.0107 0.0037 0:0460 0.0668 0.1420 0.2083 0.0972 0.4529 40 0.6717 0.3066 *Used to compute the present value of a known future amount. For example: How much would you need to invest today at 10% compounded semiannually to accumulate $5,000 in 6 years from today? Using the factors of n = 12 and i= 5% (12 semiannual periods and a semiannual rate of 5%), the factor is 0.5568. You would need to invest $2,784 today ($5,000 x 0.5568). 80 OH23 9 10 11 12 Rate