Purchase Solution

# Calculating the Market Value of Bonds

Not what you're looking for?

1. On August 1, 2002, Kathy purchased \$18,000 of ISD Co.'s 18%, 14-year bonds at face value. ISD Co. has paid the semiannual interest due on the bonds regularly. On August 1, 2006, market rates of interest had fallen to 16%, and Kathy is considering selling the bonds.

Using the present value tables (Table 6-4 and Table 6-5), calculate the market value of Kathy's bonds on August 1, 2006. (Round pv factor to 4 decimal places and the final answer to 2 decimal places.)
Market Value___________________

2. On March 1, 2005, Steve purchased \$60,000 of Blackstone Co.'s 2%, 17-year bonds at face value. Blackstone Co. has paid the annual interest due on the bonds regularly. On March 1, 2010, market interest rates had risen to 6%, and Steve is considering selling the bonds.

Using the present value tables (Table 6-4 and Table 6-5), calculate the market value of Steve's bonds on March 1, 2010. (Round PV factor to 4 decimal places and the final answer to 2 decimal places.)
Market Value________________________

##### Solution Summary

Using Excel, this solution illustrates how to compute the market values of bonds.

##### Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

##### Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.