Question: Problem 10-17 (Algo) Deep discount bonds [LO10-3] Lance Whittingham N specializes in buying deep discount bonds. These represent bonds that are trading at well below

Problem 10-17 (Algo) Deep discount bonds [LO10-3] Lance Whittingham N 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 pays 8 percent annual interest and has 17 years remaining to maturity. The current yleld to maturity on similar bonds is 13 percent. Use Appendix B and ppendixD for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the current price of the bonds? Note: Do not round intermediate calculations, Round your final onswer to 2 decimal places. Assume interest poyments are onnual. b. By what percent will the price of the bonds increase between now and maturity? Note: Do not round intermediate calculations. Input your answer as o percent rounded to 2 decimal places

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