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A corporate bond maturing in 15 years with a coupon rate of 10.9 percent was purchased for $970 and it now selling for $1,000. 1. What will be its selling price in two years if comparable market interest rates drop 4.9 percentage points? (Hint: Use Appendix A-2 and Appendix A-4 or the Garman/Forgue companion website.) Round Present Value of a Single Amount and Present Value of Series of Equal Amounts in intermediate calculations to four decimal places. Round your answer to the nearest cent. $  2. Calculate the bond's YTM using Equation 14.5 or the Garman/Forgue companion website. Round your answer to two decimal places.

A corporate bond maturing in 15 years with a coupon rate of 10.9 percent was purchased for $970 and it now selling for $1,000. 1. What will be its selling price in two years if comparable market interest rates drop 4.9 percentage points? (Hint: Use Appendix A-2 and Appendix A-4 or the Garman/Forgue companion website.) Round Present Value of a Single Amount and Present Value of Series of Equal Amounts in intermediate calculations to four decimal places. Round your answer to the nearest cent. $  2. Calculate the bond's YTM using Equation 14.5 or the Garman/Forgue companion website. Round your answer to two decimal places.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A corporate bond maturing in 15 years with a coupon rate of 10.9 percent was purchased for $970 and it now selling for $1,000.

1. What will be its selling price in two years if comparable market interest rates drop 4.9 percentage points? (Hint: Use Appendix A-2 and Appendix A-4 or the Garman/Forgue companion website.) Round Present Value of a Single Amount and Present Value of Series of Equal Amounts in intermediate calculations to four decimal places. Round your answer to the nearest cent.

$ 

2. Calculate the bond's YTM using Equation 14.5 or the Garman/Forgue companion website. Round your answer to two decimal places.

      %

 

Appendix A-2 1% 2% 3% 1 0.9901 0.9804 0.9709 2 0.9803 0.9612 3 0.9706 0.9423 4 0.9610 0.9238 20% 0.8621 0.9009 0.8116 0.9426 0.9151 0.8885 0.8548 0.8850 0.7831 0.6931 5 0.9515 0.9057 0.8626 0.82 19 0.7835 6 0.1615 0.1346 11 0.1122 12 0.0935 13 0.0779 0.0736 0.0649 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.89 29 0.8772 0.8696 0.8547 0.8475 0.8403 0.8333 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.7972 0.7695 0.7561 0.7432 0.7305 0.7182 0.7062 0.6944 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.71 18 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.5787 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.63 55 0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.4823 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.4019 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.3349 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791 8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 10 0.9053 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 0.8963 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 0.8874 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 0.8787 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 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 15 0.8613 0.7430 0.6419 0.5553 0.48 10 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.0949 0.0835 0.8528 0.7284 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.0930 0.0811 0.0708 0.8444 0.7142 0.6050 0.5134 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.09 29 0.0802 0.0693 0.0600 0.05.20 18 0.8360 0.7002 0.5874 0.4936 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.0592 0.0508 0.0437 19 0.8277 0.6864 0.5703 0.4746 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.0506 0.0431 0.0367 20 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.05 14 0.0433 0.0365 0.0308 21 08114 0.6598 0.5375 0.4388 0.3589 0.2942 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.0443 0.0370 0.0309 0.0259 22 0.8034 0.6468 0.5219 0.4220 0.3418 0.2775 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 23 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 0.03 29 0.0270 0.0222 0.0183 24 0.7876 0.6217 0.4919 0.3901 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 25 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.0160 0.0129 0.5976 0.4637 0.3607 0.2812 0.2198 0.1722 0.1352 0.1064 0.0839 0.0663 0.0525 0.0417 0.0331 0.0264 0.0211 0.0169 0.0135 0.0109 27 0.7644 0.5859 0.4502 0.3468 0.2678 0.2074 0.1609 0.1252 0.0976 0.0763 0.0597 0.0469 0.0369 0.0291 0.0230 0.0182 0.0144 0.0115 0.0091 28 0.7568 0.5744 0.4371 0.3335 0.2551 0.1956 0.1504 0.0895 0.0693 0.0538 0.0419 0.03 26 0.0255 0.0200 0.0157 0.0123 0.0097 0.0077 29 0.7493 0.1073 0.0822 0.0630 0.0485 0.0374 0.0289 0.0224 0.0174 0.0135 0.0105 0.0082 0.0064 30 0.7419 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0090 0.0070 0.0054 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0019 0.0013 0.0010 0.0339 0.0213 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0004 0.0003 0.0002 0.3936 0.0618 16 0.0541 17 0.6232 0.5339 0.4581 0.4363 0.4155 0.3714 0.3166 0.0451 0.3503 0.2959 0.2502 0.3957 0.3305 0.2765 0.2317 0.0376 0.0313 0.0261 0.2584 0.2145 0.1784 0.2415 0.1987 0.2257 0.0217 0.0181 0.0151 0.0126 0.0105 0.0087 26 0.7720 0.0073 0.1159 0.1406 0.5631 0.4243 0.3207 0.2429 0.1846 0.5521 0.4120 0.3083 0.2314 0.1741 0.4529 0.3066 0.2083 0.1420 0.0972 0.3715 0.1407 0.0061 0.0051 0.0042 0.0007 0.0001 0.67 17 40 50 0.6080 0.2281 0.0872 0.0543 Present Value of a Single Amount ($1) (Used to Compute the Discounted Present Value of Some Known Future Single Lump Sum) n
Transcribed Image Text:Appendix A-2 1% 2% 3% 1 0.9901 0.9804 0.9709 2 0.9803 0.9612 3 0.9706 0.9423 4 0.9610 0.9238 20% 0.8621 0.9009 0.8116 0.9426 0.9151 0.8885 0.8548 0.8850 0.7831 0.6931 5 0.9515 0.9057 0.8626 0.82 19 0.7835 6 0.1615 0.1346 11 0.1122 12 0.0935 13 0.0779 0.0736 0.0649 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.89 29 0.8772 0.8696 0.8547 0.8475 0.8403 0.8333 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.7972 0.7695 0.7561 0.7432 0.7305 0.7182 0.7062 0.6944 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.71 18 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.5787 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.63 55 0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.4823 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.4019 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.3349 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791 8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 10 0.9053 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 0.8963 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 0.8874 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 0.8787 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 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 15 0.8613 0.7430 0.6419 0.5553 0.48 10 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.0949 0.0835 0.8528 0.7284 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.0930 0.0811 0.0708 0.8444 0.7142 0.6050 0.5134 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.09 29 0.0802 0.0693 0.0600 0.05.20 18 0.8360 0.7002 0.5874 0.4936 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.0592 0.0508 0.0437 19 0.8277 0.6864 0.5703 0.4746 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.0506 0.0431 0.0367 20 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.05 14 0.0433 0.0365 0.0308 21 08114 0.6598 0.5375 0.4388 0.3589 0.2942 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.0443 0.0370 0.0309 0.0259 22 0.8034 0.6468 0.5219 0.4220 0.3418 0.2775 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 23 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 0.03 29 0.0270 0.0222 0.0183 24 0.7876 0.6217 0.4919 0.3901 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 25 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.0160 0.0129 0.5976 0.4637 0.3607 0.2812 0.2198 0.1722 0.1352 0.1064 0.0839 0.0663 0.0525 0.0417 0.0331 0.0264 0.0211 0.0169 0.0135 0.0109 27 0.7644 0.5859 0.4502 0.3468 0.2678 0.2074 0.1609 0.1252 0.0976 0.0763 0.0597 0.0469 0.0369 0.0291 0.0230 0.0182 0.0144 0.0115 0.0091 28 0.7568 0.5744 0.4371 0.3335 0.2551 0.1956 0.1504 0.0895 0.0693 0.0538 0.0419 0.03 26 0.0255 0.0200 0.0157 0.0123 0.0097 0.0077 29 0.7493 0.1073 0.0822 0.0630 0.0485 0.0374 0.0289 0.0224 0.0174 0.0135 0.0105 0.0082 0.0064 30 0.7419 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0090 0.0070 0.0054 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0019 0.0013 0.0010 0.0339 0.0213 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0004 0.0003 0.0002 0.3936 0.0618 16 0.0541 17 0.6232 0.5339 0.4581 0.4363 0.4155 0.3714 0.3166 0.0451 0.3503 0.2959 0.2502 0.3957 0.3305 0.2765 0.2317 0.0376 0.0313 0.0261 0.2584 0.2145 0.1784 0.2415 0.1987 0.2257 0.0217 0.0181 0.0151 0.0126 0.0105 0.0087 26 0.7720 0.0073 0.1159 0.1406 0.5631 0.4243 0.3207 0.2429 0.1846 0.5521 0.4120 0.3083 0.2314 0.1741 0.4529 0.3066 0.2083 0.1420 0.0972 0.3715 0.1407 0.0061 0.0051 0.0042 0.0007 0.0001 0.67 17 40 50 0.6080 0.2281 0.0872 0.0543 Present Value of a Single Amount ($1) (Used to Compute the Discounted Present Value of Some Known Future Single Lump Sum) n
Appendix A-4 n 1% 2% 3% 5% 6% 0.9524 0.9434 7% 0.9346 8% 0.9259 0.9901 0.9804 0.9709 0.9615 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 1.9704 1.8861 2.8286 2.7751 2.9410 1.9416 1.9135 2.8839 3.8077 3.7171 3.6299 3.5460 4.7135 4.5797 4.4518 5 2.9906 3.9020 4.8534 5.7955 5.6014 5.4172 5.2421 6.7282 6.4720 6.2303 6 7 8 9 7.6517 7.3255 7.0197 8.5660 8.1622 9.4713 8.9826 8.5302 11 10.3676 10 6.8052 4.8364 4.6560 4.4865 4.3271 7.1607 9.2950 9.7122 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 0.8696 0.8621 0.8547 0.8475 0.8403 0.8333 1.8594 1.8334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 1.6681 1.6467 1.6257 1.6052 1.5852 1.5656 1.5465 1.5278 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.4437 2.4018 2.3612 2.3216 2.2832 2.2459 2.2096 2.1743 2.1399 2.1065 3.4651 3.3872 3.3121 3.2397 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 2.7982 2.7432 2.6901 2.6386 2.5887 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.6959 3.6048 3.5172 3.4331 3.3522 3.2743 3.1993 3.1272 3.0576 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.7845 3.6847 3.5892 3.4976 3.4098 3.3255 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.7122 4.5638 4.4226 4.2883 4.1604 4.0386 3.9224 3.8115 3.7057 3.6046 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 4.4873 4.3436 4.2072 4.0776 3.9544 3.8372 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.7716 4.6065 4.4506 4.3030 4.1633 4.0310 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.8892 5.6502 5.4262 5.2161 5.0188 4.8332 4.6586 4.4941 4.3389 4.1925 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 6.4951 6.2065 5.9377 5.6869 5.4527 5.2337 5.0286 12 11.2551 10.5753 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 6.8137 6.4924 6.1944 5.9176 5.6603 5.4206 5.1971 4.9884 4.7932 4.6105 4.4392 13 12.1337 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.7499 6.4235 6.1218 5.8424 5.5831 5.3423 5.1183 4.9095 4.7147 4.5327 9.8986 8.2442 7.7862 7.3667 6.98 19 6.6282 6.3025 6.002 1 5.7245 5.4675 5.2293 5.0081 4.8023 4.6106 8.5595 8.0607 7.6061 7.1909 6.8109 6.4624 6.1422 5.8474 5.5755 5.3242 5.0916 4.8759 4.6755 8.8514 8.3126 7.8237 7.3792 6.9740 6.6039 6.2651 5.9542 5.6685 5.4053 5.1624 4.9377 4.7296 17 15.5623 14.2919 13.1661 12.1657 9.1216 8.5436 8.0216 7.5488 7.1196 6.7291 6.3729 6.0472 5.7487 5.4746 5.2223 4.9897 4.7746 18 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.7016 7.2497 6.8399 6.4674 6.1280 5.8178 5.5339 5.2732 5.0333 4.8122 19 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.8393 7.3658 6.9380 6.5504 6.1982 5.8775 5.5845 5.3162 5.0700 4.8435 20 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.9633 7.4694 7.0248 6.6231 6.2593 5.9288 5.6278 5.3527 5.1009 4.8696 21 18.8570 17.0112 15.4150 14.0292 12.8212 11.7641 10.8355 10.0168 9.2922 8.6487 8.0751 7.5620 7.1016 6.6870 6.3125 5.9731 5.6648 5.3837 5.1268 4.8913 22 19.6604 17.6580 15.9369 14.4511 13.1630 12.0416 11.0612 10.2007 9.4424 8.7715 8.1757 7.6446 7.1695 6.7429 6.3587 6.0113 5.6964 5.4099 5.1486 4.9094 23 20.4558 18.2922 16.4436 11.2722 10.3711 9.5802 8.8832 8.2664 7.7184 7.2297 6.7921 6.3988 6.0442 5.7234 5.4321 5.1668 4.9245 24 21.2434 18.9139 16.9355 15.2470 13.7986 12.5504 11.4693 10.5288 9.7066 8.9847 8.3481 7.7843 7.2829 6.8351 6.4338 6.0726 5.7465 5.4509 5.1822 4.9371 25 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 8.4217 7.8431 7.3300 6.8729 6.4641 6.0971 5.7662 5.4669 5.1951 4.9476 26 22.7952 20.1210 17.8768 15.9828 14.3752 13.0032 11.8258 10.8100 9.9290 9.1609 8.4881 7.8957 7.3717 6.9061 6.4906 6.1182 5.7831 5.4804 5.2060 4.9563 27 23.5596 20.7069 18.3270 16.3296 14.6430 13.2105 11.9867 10.9352 10.0266 9.2372 8.5478 7.9426 7.4086 6.9352 6.5135 6.1364 5.7975 5.4919 5.2151 4.9636 28 24.3164 21.2813 18.7641 16.6631 14.8981 13.4062 12.1371 11.0511 10.1161 9.3066 8.6016 7.9844 7.4412 6.9607 6.5335 6.1520 5.8099 5.5016 5.2228 4.9697 29 25.0658 21.8444 19.1885 16.9837 15.1411 13.5907 12.2777 11.1584 10.1983 9.3696 8.6501 8.02 18 7.4701 6.9830 6.5509 6.1656 5.8204 5.5098 5.2292 4.9747 30 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.6938 8.0552 7.4957 7.0027 6.5660 6.1772 5.8294 5.5168 5.2347 4.9789 40 32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.9511 8.2438 7.6344 7.1050 6.6418 6.2335 50 39.1961 31.4236 25.7298 21.4822 18.2559 15.7619 13.8007 12.2335 10.9617 9.9148 9.0417 8.3045 7.6752 7.1327 6.6605 6.2463 14 13.0037 12.1062 11.2961 10.5631 15 13.8651 12.8493 11.9379 11.1184 10.3797 10.8378 11.2741 8.7455 9.1079 9.4466 9.7632 16 14.7179 13.5777 12.5611 11.6523 10.1059 10.4773 14.8568 13.4886 12.3034 5.8713 5.5482 5.2582 4.9966 5.8801 5.5541 5.2623 4.9995 1 2 3 Present Value of a Series of Equal Amounts (an Annuity of $1 Received at the End of Each Period) (Used to Compute the Discounted Present Value of a Stream of Income Payments) 4%
Transcribed Image Text:Appendix A-4 n 1% 2% 3% 5% 6% 0.9524 0.9434 7% 0.9346 8% 0.9259 0.9901 0.9804 0.9709 0.9615 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 1.9704 1.8861 2.8286 2.7751 2.9410 1.9416 1.9135 2.8839 3.8077 3.7171 3.6299 3.5460 4.7135 4.5797 4.4518 5 2.9906 3.9020 4.8534 5.7955 5.6014 5.4172 5.2421 6.7282 6.4720 6.2303 6 7 8 9 7.6517 7.3255 7.0197 8.5660 8.1622 9.4713 8.9826 8.5302 11 10.3676 10 6.8052 4.8364 4.6560 4.4865 4.3271 7.1607 9.2950 9.7122 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 0.8696 0.8621 0.8547 0.8475 0.8403 0.8333 1.8594 1.8334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 1.6681 1.6467 1.6257 1.6052 1.5852 1.5656 1.5465 1.5278 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.4437 2.4018 2.3612 2.3216 2.2832 2.2459 2.2096 2.1743 2.1399 2.1065 3.4651 3.3872 3.3121 3.2397 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 2.7982 2.7432 2.6901 2.6386 2.5887 4.3295 4.2124 4.1002 3.9927 3.8897 3.7908 3.6959 3.6048 3.5172 3.4331 3.3522 3.2743 3.1993 3.1272 3.0576 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.7845 3.6847 3.5892 3.4976 3.4098 3.3255 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.7122 4.5638 4.4226 4.2883 4.1604 4.0386 3.9224 3.8115 3.7057 3.6046 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 4.4873 4.3436 4.2072 4.0776 3.9544 3.8372 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.7716 4.6065 4.4506 4.3030 4.1633 4.0310 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.8892 5.6502 5.4262 5.2161 5.0188 4.8332 4.6586 4.4941 4.3389 4.1925 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 6.4951 6.2065 5.9377 5.6869 5.4527 5.2337 5.0286 12 11.2551 10.5753 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 6.8137 6.4924 6.1944 5.9176 5.6603 5.4206 5.1971 4.9884 4.7932 4.6105 4.4392 13 12.1337 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.7499 6.4235 6.1218 5.8424 5.5831 5.3423 5.1183 4.9095 4.7147 4.5327 9.8986 8.2442 7.7862 7.3667 6.98 19 6.6282 6.3025 6.002 1 5.7245 5.4675 5.2293 5.0081 4.8023 4.6106 8.5595 8.0607 7.6061 7.1909 6.8109 6.4624 6.1422 5.8474 5.5755 5.3242 5.0916 4.8759 4.6755 8.8514 8.3126 7.8237 7.3792 6.9740 6.6039 6.2651 5.9542 5.6685 5.4053 5.1624 4.9377 4.7296 17 15.5623 14.2919 13.1661 12.1657 9.1216 8.5436 8.0216 7.5488 7.1196 6.7291 6.3729 6.0472 5.7487 5.4746 5.2223 4.9897 4.7746 18 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 7.7016 7.2497 6.8399 6.4674 6.1280 5.8178 5.5339 5.2732 5.0333 4.8122 19 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.8393 7.3658 6.9380 6.5504 6.1982 5.8775 5.5845 5.3162 5.0700 4.8435 20 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.9633 7.4694 7.0248 6.6231 6.2593 5.9288 5.6278 5.3527 5.1009 4.8696 21 18.8570 17.0112 15.4150 14.0292 12.8212 11.7641 10.8355 10.0168 9.2922 8.6487 8.0751 7.5620 7.1016 6.6870 6.3125 5.9731 5.6648 5.3837 5.1268 4.8913 22 19.6604 17.6580 15.9369 14.4511 13.1630 12.0416 11.0612 10.2007 9.4424 8.7715 8.1757 7.6446 7.1695 6.7429 6.3587 6.0113 5.6964 5.4099 5.1486 4.9094 23 20.4558 18.2922 16.4436 11.2722 10.3711 9.5802 8.8832 8.2664 7.7184 7.2297 6.7921 6.3988 6.0442 5.7234 5.4321 5.1668 4.9245 24 21.2434 18.9139 16.9355 15.2470 13.7986 12.5504 11.4693 10.5288 9.7066 8.9847 8.3481 7.7843 7.2829 6.8351 6.4338 6.0726 5.7465 5.4509 5.1822 4.9371 25 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 8.4217 7.8431 7.3300 6.8729 6.4641 6.0971 5.7662 5.4669 5.1951 4.9476 26 22.7952 20.1210 17.8768 15.9828 14.3752 13.0032 11.8258 10.8100 9.9290 9.1609 8.4881 7.8957 7.3717 6.9061 6.4906 6.1182 5.7831 5.4804 5.2060 4.9563 27 23.5596 20.7069 18.3270 16.3296 14.6430 13.2105 11.9867 10.9352 10.0266 9.2372 8.5478 7.9426 7.4086 6.9352 6.5135 6.1364 5.7975 5.4919 5.2151 4.9636 28 24.3164 21.2813 18.7641 16.6631 14.8981 13.4062 12.1371 11.0511 10.1161 9.3066 8.6016 7.9844 7.4412 6.9607 6.5335 6.1520 5.8099 5.5016 5.2228 4.9697 29 25.0658 21.8444 19.1885 16.9837 15.1411 13.5907 12.2777 11.1584 10.1983 9.3696 8.6501 8.02 18 7.4701 6.9830 6.5509 6.1656 5.8204 5.5098 5.2292 4.9747 30 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.6938 8.0552 7.4957 7.0027 6.5660 6.1772 5.8294 5.5168 5.2347 4.9789 40 32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.9511 8.2438 7.6344 7.1050 6.6418 6.2335 50 39.1961 31.4236 25.7298 21.4822 18.2559 15.7619 13.8007 12.2335 10.9617 9.9148 9.0417 8.3045 7.6752 7.1327 6.6605 6.2463 14 13.0037 12.1062 11.2961 10.5631 15 13.8651 12.8493 11.9379 11.1184 10.3797 10.8378 11.2741 8.7455 9.1079 9.4466 9.7632 16 14.7179 13.5777 12.5611 11.6523 10.1059 10.4773 14.8568 13.4886 12.3034 5.8713 5.5482 5.2582 4.9966 5.8801 5.5541 5.2623 4.9995 1 2 3 Present Value of a Series of Equal Amounts (an Annuity of $1 Received at the End of Each Period) (Used to Compute the Discounted Present Value of a Stream of Income Payments) 4%
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