Essex Biochemical Co. has a $1,000 par value bond outstandingthat pays 13 percent annual interest. The current yield to maturityon such bonds in the market is 13 percent. Use Appendix B andAppendix D for an approximate answer but calculate your finalanswer using the formula and financial calculator methods. Computethe price of the bonds for the maturity dates: (Do not roundintermediate calculations. Round your final answer to 2 decimalplaces. Assume interest payments are annual.)
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| | | Bond Price | | a. | 30 years | | | b. | 20 years | | | c. | 2 years |
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