APPENDIX B:

APPENDIX D:

A $1,000 bond has a 4 percent coupon and currently sells for $750. The bond matures after six years. What is the bond's anticipated yield? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number. % Interest Factors for the Present Value of One Dollar Time Period (e.g. year) 1 2 3 4 5 1% 2% 3% 4% .990 .980 .971 962 980 961 .943 925 971 .942 915 889 961 924 .889 855 951 906 863 822 5% 952 1907 .864 .823 .784 6% .943 .890 .840 .792 .747 7% .935 .873 .816 .763 .713 8% .926 .857 .794 .735 .681 9% 10% 12% 14% 15% 917 909.893 .877 870 .842 .826 797 .769 .756 .772 751 .712 .675.658 .708 .683 636 592 .572 .650 621 .567 .519 .497 16% .862 .743 .641 .552 .476 18% .847 .718 .609 .516 437 20% .833 .694 .579 482 402 24% .806 .650 524 423 .341 28% 1.781 .610 477 .373 .291 6 7 8 9 10 942 888 838 933 871 .813 923 .853 .789 914 .837 .766 905 .820 .744 .790 .760 .731 .703 .676 .746 .711 .677 .645 .614 .705 .666.630 59 .665.623 .583 547 .627 .582 .540 .502 .592 .544 .500 460 .558 .508 463 422 564 507 .513452 467 404 424 361 386 322 456 432 400 376 351 .327 308 .284 .270 247 410 .354 .305 .263 .227 .370 314 .266 .226 .191 335 .279 .233 .194 .162 .275 .222 .179 144 .116 .227 .178 .139 .108 .085 11 12 13 14 15 .896 .887 .879 .870 .861 .804 722 650 .788 .701 .625 .773 .681 .601 .758 .661 .577 .743 .642 555 .585 .557 .530 .505 .481 .527 .497 469 .442 .417 475 444 .415 388 .362 429 .397 .368 .340 315 .388 .356 326 .299 -275 .350 .319 .290 .263 .239 .287 .257 .229 .205 .183 .237 -208 .182 .160 .140 215 .187 .163 .141 .123 .195 .162 .168 .137 .145 .125 .099 .108 084 .116 .135 .094 .112 .076 .093 061 .078 .049 .065 .040 .066 052 .040 .032 .025 16 17 18 19 20 .853 .844 .836 .828 .820 .728 .714 .700 .686 .673 .623 534 .605 .513 .587 494 .570 .475 .554 .456 458 394 436 371 416 350 396 .331 377 .312 .339 .317 .296 .276 .258 .292 .270 .250 .232 .215 .252 .231 .212 .194 .178 .218 .198 .180 .164 .149 .163 .123 .107.093.071 .146 108 093 .080 .060 .130.095 .081.069 .051 .116 083 .070 .060 .043 .104 073 061 .051 .037 .054 .032 .045.026 .038 .021 .031 .017 .026 .014 .019 .015 .012 .009 .007 25 .780 .610 .478 375 .295 .233 .184 .146 .116 .092 .059 038 030 .024 .016 .010 .005 .002 30 .742 .552 412 308 .231 .174 .131 .099 .075 .057 .033 .020 .015 .012 .007 .004 2002 .001 Interest Factors for the Present Value of an Annuity of One Dollar Time Period (e.g.. year) 2 3 4 5 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 6 7 8 9 10 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 6.373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 3.109 2.770 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778