n 1% 2% 3% 1 0.9901 0.9804 0.9709 2 0.9803 0.9612 3 0.9706 4 0.9610 5 0.9515 6 0.9420 7 0.9327 Known Future Single Lump Sum) 0.9423 0.9151 0.8885 0.9238 0.9057 0.8626 4% 5% 6% 7% 8% 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.8116 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.4632 0.4224 0.3855 0.4289 0.3875 0.3505 0.3971 0.3555 0.3186 0.8880 0.8375 0.8706 0.8131 8 0.9235 10 9 0.9143 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 04440 11 14% 15% 16% 9% 10% 11% 12% 13% 0.8929 0.8850 0.8772 0.8696 0.8621 0.7972 0.7831 0.7695 0.7561 0.7432 0.7118 0.6931 0.6750 0.6575 0.6407 0.6587 0.6355 0.6133 0.5921 0.5718 0.5523 0.4251 0.3996 0.3759 0.5935 0.5674 0.5428 0.5194 0.4972 0.5346 0.5066 0.4803 0.4556 0.4323 0.4817 0.4523 0.4339 0.4039 0.3762 0.3506 0.3269 0.3909 0.3606 0.3329 0.3522 0.3220 0.2946 0.3173 0.2875 0.2607 0.2858 0.2567 0.2307 0.4761 0.4104 0.3538 0.3050 0.3075 0.2843 0.2630 0.2697 0.2472 0.2267 0.2366 0.2149 0.1954 0.2076 0.1869 0.1685 17% 0.8547 0.7305 0.6244 0.5337 0.4561 0.3898 0.3332 0.2848 0.2434 0.2080 0.1778 0.1520

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Appendix A-2 Present Value of a Single Amount ($1) (Used to Compute the Discounted Present Value of Some
Known Future Single Lump Sum)
20%
1% 2% 3% 4% 5% 6%
1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434
2 0.9803 0.9612
0.9426 0.9246 0.9070 0.8900
3 0.9706 0.9423 0.9151 0.8890 0.8638
4 0.9610 0.9238 0.8885 0.8548 0.8227
0.8219 0.7835
0.7903 0.7462
0.8333
0.6944
0.5787
0.4823
5
0.9515 0.9057 0.8626
0.8375
0.7084 0.6830
0.6499 0.6209
0.5963 0.5645
0.5132
6 0.9420 0.8880
0.6227
0.5835
0.5470
7 0.9327 0.8706 0.8131 0.7599 0.7107
0.9235
8
0.6274
0.5820
0.50 19
0.4665
0.4339
0.5919 0.5439
0.4604
10
0.9143
0.9053
0.8963
11
15
7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19%
0.9346 0.9259 0.9174 0.9091 0.9009 0.89 29 0.8850 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403
0.8734
0.8573 0.8417 0.8264 0.8116 0.7972
0.7831
0.7695 0.7561 0.7432 0.7305 0.7182 0.7062
0.8396 0.8163 0.7938 0.7722 0.7513
0.7312 0.71 18 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934
0.7921 0.7629 0.7350
0.6587 0.6355
0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987
0.7473 0.7130 0.6806
0.5935 0.5674 0.5428 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.4019
0.7050 0.6663 0.6302
0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.3349
0.6651
0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791
0.8535 0.7894 0.7307 0.6768
0.5403
0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326
0.8368 0.7664 0.70 26 0.6446
0.5002
0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938
0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 0.1615
0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 0.1346
12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122
13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.1299 0.1163 0.1042 0.0935
14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.1252 0.1110 0.0985 0.0876 0.0779
0.8613 0.7430 0.6419 0.5553 0.48 10
0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.0949 0.0835 0.0736 0.0649
0.85 28 0.7284
0.4581
0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.0930 0.0811 0.0708 0.0618
0.7142
0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0802 0.0693 0.0600 0.05.20 0.0451
0.4155 0.3503
0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.0592 0.0508 0.0437 0.0376
0.3957 0.3305 0.2765
0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.0506 0.0431 0.0367 0.0313
0.3769
0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.0365 0.0308 0.0261
0.3589 0.2942 0.2415 0.1987 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.0443 0.0370 0.0309 0.0259 0.0217
0.3418 0.2775 0.2257 0.1839 0.1502 0.1228 0.1007 0.0826 0.0680 0.0560 0.0462 0.0382 0.03 16 0.0262 0.0218 0.0181
0.3256 0.2618 0.2109 0.1703 0.1378
0.1117 0.0907 0.07 38 0.0601 0.0491 0.0402 0.03 29 0.0270 0.0222 0.0183 0.0151
0.3101 0.2470 0.1971 0.1577 0.1264 0.1015 0.0817 0.0659 0.0532 0.0431 0.0349 0.0284 0.0231 0.0188 0.0154 0.0126
0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.0160 0.0129
0.1064 0.0839 0.0663 0.0525 0.0417 0.0331 0.0264 0.0211 0.0169 0.0135 0.0109
0.0976 0.0763 0.0597 0.0469 0.0369 0.0291 0.0230 0.0182
0.1159 0.0895 0.0693 0.0538 0.0419 0.03 26 0.0255 0.0200 0.0157
0.1073 0.0822 0.0630 0.0485 0.0374
0.0224 0.0174 0.0135
0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116
0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026
0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006
0.4173
0.3936
16
0.0541
0.6232 0.5339
0.6050 0.5134
18 0.8360 0.7002 0.5874 0.4936
19 0.8277 0.6864 0.5703 0.4746
0.4564
17 0.8444
0.2959
0.2502
0.2317
0.3118 0.2584 0.2145 0.1784
20 0.8195 0.6730 0.5537
21 0.8114 0.6598 0.5375
0.5219
0.4388
22 0.8034 0.6468
0.4220
0.5067
0.4057
0.4919 0.3901
0.4776
0.0105
0.3751
0.3607
0.4637
0.1842 0.1460
0.1722 0.1352
0.1609 0.1252
0.3468
0.4502
0.5744 0.4371 0.3335
0.5631 0.4243 0.3207
0.5521
0.2953 0.2330
0.2812 0.2198
0.2678 0.2074
0.2551 0.1956 0.1504
0.2429 0.1846 0.1406
0.1741
0.0972
0.0289
0.0087
0.0144 0.0115 0.0091 0.0073
0.0123 0.0097 0.0077 0.0061
0.0105 0.0082 0.0064 0.0051
0.0090 0.0070 0.0054 0.0042
0.0019 0.0013 0.0010 0.0007
0.0002 0.0001
0.4120
0.3083
0.2314
0.4529 0.3066
0.2083
0.1420
0.0668
0.2281
0.1407
0.0872
0.0543
0.0339
0.0213
0.0004 0.0003
n
9
23 0.7954
24 0.7876
0.6342
0.6217
0.7798 0.6095
0.7720 0.5976
25
26
27 0.7644 0.5859
28 0.7568
0.7493
0.7419
0.6717
29
30
40
50 0.6080 0.3715
Transcribed Image Text:Appendix A-2 Present Value of a Single Amount ($1) (Used to Compute the Discounted Present Value of Some Known Future Single Lump Sum) 20% 1% 2% 3% 4% 5% 6% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 3 0.9706 0.9423 0.9151 0.8890 0.8638 4 0.9610 0.9238 0.8885 0.8548 0.8227 0.8219 0.7835 0.7903 0.7462 0.8333 0.6944 0.5787 0.4823 5 0.9515 0.9057 0.8626 0.8375 0.7084 0.6830 0.6499 0.6209 0.5963 0.5645 0.5132 6 0.9420 0.8880 0.6227 0.5835 0.5470 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.9235 8 0.6274 0.5820 0.50 19 0.4665 0.4339 0.5919 0.5439 0.4604 10 0.9143 0.9053 0.8963 11 15 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 0.9346 0.9259 0.9174 0.9091 0.9009 0.89 29 0.8850 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7561 0.7432 0.7305 0.7182 0.7062 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.71 18 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.7921 0.7629 0.7350 0.6587 0.6355 0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.7473 0.7130 0.6806 0.5935 0.5674 0.5428 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.4019 0.7050 0.6663 0.6302 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.3349 0.6651 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791 0.8535 0.7894 0.7307 0.6768 0.5403 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 0.8368 0.7664 0.70 26 0.6446 0.5002 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 0.1615 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 0.1346 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.1299 0.1163 0.1042 0.0935 14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.1252 0.1110 0.0985 0.0876 0.0779 0.8613 0.7430 0.6419 0.5553 0.48 10 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.0949 0.0835 0.0736 0.0649 0.85 28 0.7284 0.4581 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.0930 0.0811 0.0708 0.0618 0.7142 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0802 0.0693 0.0600 0.05.20 0.0451 0.4155 0.3503 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.0592 0.0508 0.0437 0.0376 0.3957 0.3305 0.2765 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.0506 0.0431 0.0367 0.0313 0.3769 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.0365 0.0308 0.0261 0.3589 0.2942 0.2415 0.1987 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.0443 0.0370 0.0309 0.0259 0.0217 0.3418 0.2775 0.2257 0.1839 0.1502 0.1228 0.1007 0.0826 0.0680 0.0560 0.0462 0.0382 0.03 16 0.0262 0.0218 0.0181 0.3256 0.2618 0.2109 0.1703 0.1378 0.1117 0.0907 0.07 38 0.0601 0.0491 0.0402 0.03 29 0.0270 0.0222 0.0183 0.0151 0.3101 0.2470 0.1971 0.1577 0.1264 0.1015 0.0817 0.0659 0.0532 0.0431 0.0349 0.0284 0.0231 0.0188 0.0154 0.0126 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.0160 0.0129 0.1064 0.0839 0.0663 0.0525 0.0417 0.0331 0.0264 0.0211 0.0169 0.0135 0.0109 0.0976 0.0763 0.0597 0.0469 0.0369 0.0291 0.0230 0.0182 0.1159 0.0895 0.0693 0.0538 0.0419 0.03 26 0.0255 0.0200 0.0157 0.1073 0.0822 0.0630 0.0485 0.0374 0.0224 0.0174 0.0135 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.4173 0.3936 16 0.0541 0.6232 0.5339 0.6050 0.5134 18 0.8360 0.7002 0.5874 0.4936 19 0.8277 0.6864 0.5703 0.4746 0.4564 17 0.8444 0.2959 0.2502 0.2317 0.3118 0.2584 0.2145 0.1784 20 0.8195 0.6730 0.5537 21 0.8114 0.6598 0.5375 0.5219 0.4388 22 0.8034 0.6468 0.4220 0.5067 0.4057 0.4919 0.3901 0.4776 0.0105 0.3751 0.3607 0.4637 0.1842 0.1460 0.1722 0.1352 0.1609 0.1252 0.3468 0.4502 0.5744 0.4371 0.3335 0.5631 0.4243 0.3207 0.5521 0.2953 0.2330 0.2812 0.2198 0.2678 0.2074 0.2551 0.1956 0.1504 0.2429 0.1846 0.1406 0.1741 0.0972 0.0289 0.0087 0.0144 0.0115 0.0091 0.0073 0.0123 0.0097 0.0077 0.0061 0.0105 0.0082 0.0064 0.0051 0.0090 0.0070 0.0054 0.0042 0.0019 0.0013 0.0010 0.0007 0.0002 0.0001 0.4120 0.3083 0.2314 0.4529 0.3066 0.2083 0.1420 0.0668 0.2281 0.1407 0.0872 0.0543 0.0339 0.0213 0.0004 0.0003 n 9 23 0.7954 24 0.7876 0.6342 0.6217 0.7798 0.6095 0.7720 0.5976 25 26 27 0.7644 0.5859 28 0.7568 0.7493 0.7419 0.6717 29 30 40 50 0.6080 0.3715
Market Price
What is the market price of a $1,000, 5 percent bond paying a semiannual coupon if comparable market interest rates rise to 12 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.)
Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places.
$
Transcribed Image Text:Market Price What is the market price of a $1,000, 5 percent bond paying a semiannual coupon if comparable market interest rates rise to 12 percent and the bond matures in 14 years? Round your answer to the nearest dollar. (Hint: Use Appendix A-2 and Appendix A-4.) Round Present Value of a Single Amount and Present Value of a Series of Equal Amounts in intermediate calculations to four decimal places. $
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