Problem 109 Interest rate effect LO3 Refer to Table 101 whic

Problem 10-9 Interest rate effect [LO3]

Refer to Table 10-1, which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) increase from 9 to 12 percent.

a.

What is the bond price at 9 percent?

  Bond price

$

b.

What is the bond price at 12 percent?

  Bond price

$

c.

What would be your percentage return on the investment if you bought when rates were 9 percent and sold when rates were 12 percent? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Enter the value as a positive amount.)

   Return on investment

%

(Click to select)ProfitLoss

(Is this a profit of a loss?)

Problem 10-12 Bond value [LO3] Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $1,180. Jim is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 14 percent interest, and it has 25 years remaining until maturity. The current yield to maturity on similar bonds is 12 percent.

a. Compute the new price of the bond. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)

New price of the bond?

b. Do you think the bond is overpriced? Yes No

Solution

Please provide the tables for getting complete answer.

I know how to solve this question but for that I need table datas.