Compute the price of the bonds for the maturity dates

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Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 20 percent annual interest. The current yield to maturity on such bonds in the market is 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Compute the price of the bonds for the maturity dates: (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)

a. 30 years

b. 25 years

c. 6 years

Reference no: EM132008753

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