S 10-19A (Algo) Computing bond price C2 Compute the selling price of 10%, 10-year bonds with a par value of $260,000 and semiannual interest payments. The annual market rate for these bonds is 12%. Use present value Table B.1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations.)" Cash Flow $260,000 par (maturity) value $13,000 interest payment Price of Bond Table Value Present Value 0.3118 $ 230,177 Table B.1 Present Value of 1 p=1/(1+0) Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% Periods 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 I 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.7972 0.7561 2 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7118 0.6575 3 4 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6355 0.5718 4 5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5674 0.4972 5 6 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5066 0.4323 6 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4523 0.3759 7 8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4039 0.3269 8 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 04241 0.3606 0.2843 9 10 09053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220 0.2472 10 11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 04289 0.3875 0.3505 0.2875 0.2149 11 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 04440 0.3971 0.3555 0.3186 0.2567 0.1869 12 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 04150 0.3677 0.3262 0.2897 0.2292 0.1625 13 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 14 15 0.8613 0.7430 0.6419 0.5553 0.4810 04173 0.3624 0.3152 0.2745 0.2394 0.1827 0.1229 15 16 0.8528 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1631 0.1069 16 17 08444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1456 18 0.0929 0.8360 0.7002 17 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 19 0.8277 0.6864 0.1300 0.5703 0.0808 18 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 20 08195 0.1635 0.6730 0.5537 0.1161 0.4564 0.0703 19 0.3769 0.3118 0.2584 0.2145 25 0.7798 0.1784 0.6095 0.1486 04776 0.3751 0.1037 0.2953 0.0611 20 0.2330 0.1842 30 0.7419 0.1460 0.1160 05521 0.4120 0.0923 0.3083 02314 0.0588 0.0304 0.1741 35 0.1314 0.0994 25 0.7059 0.5000 0.3554 0.0754 0.2534 0.0573 0.1813 0.0334 0.1301 0.0151 40 0.0937 30 0.0676 0.6717 0.4529 0.3066 0.0490 0.2083 0.0356 0.1420 0.0972 0.0189 0.0668 0.0075 Used to compute the present value of a known future amount. For example: How much would you need to invest today at 10% compounded semiann 0.0460 35 0.0318 0.0221 0.0107 0.0037 40 Table B.3 Present Value of an Annuity of 11 p=[1-1/(1+i)"yi Rate Periods 1% 2% 3% 4% 5% 6% 7% I 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 2 19704 1.9416 19135 1.8861 1.8594 1.8334 3 2.9410 2.8839 2.8286 2.7751 2.7232 8% 9% 0.9259 0.9174 1.8080 1.7833 1.7591 2.6730 2.6243 2.5771 10% 12% 15% Periods 0.9091 0.8929 0.8696 1 1.7355 1.6901 1.6257 2 2.5313 2.4869 2.4018 2.2832 3 4 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.0373 2.8550 4 5 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.6048 3.3522 5 6 5.7955 5.6014 54172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553. 4.1114 3.7845 6 7 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.5638 4.1604 7 8 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.9676 4.4873 8 9 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.3282 4.7716 9 10 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 64177 6.1446 5.6502 5.0188 10 11 10.3676 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 6.8052 6.4951 5.9377 5.2337 11 12 11.2551 10.5753 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 6.1944 5.4206 12 13 12.1337 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.4235 5.5831 13 14 13.0037 12.1062 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 6.6282 5.7245 14 15 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 6.8109 5.8474 15 16 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 6.9740 5.9542 16 17 15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.1196 6.0472 18 16.3983 17 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 19 17.2260 7.2497 6.1280 15.6785 14.3238 18 13.1339 12.0853 11.1581 10.3356 9.6036 20 18.0456 8.9501 8.3649 7.3658 16.3514 14.8775 13.5903 6.1982 12.4622 19 11.4699 10.5940 9.8181 25 22.0232 19.5235 9.1285 8.5136 17.4131 15.6221 7.4694 14.0939 6.2593 12.7834 20 11.6536 10.6748 30 25.8077 22.3965 19.6004 9.8226 9.0770 17.2920 153725 7.8431 6.4641 13.7648 25 12.4090 35 29.4086 11.2578 24.9986 10.2737 21.4872 18.6646 94269 16.3742 8.0552 144982 6.5660 12.9477 30 40 328347 11.6546 27.3555 23.1148 10.5668 19.7928 17.1591 9.6442 15.0463 13.3317 8.1755 6.6166 11.9246 35 Used to calculate the present value of a series of coual payments made at the end of each period. For example: What is the press 10.7574 9.7791 8.2438 6.6418 40