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Katie Pairy Fruits incorporated has a $3,00022-year bond outstanding with a nominal yield of 15...

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Accounting

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Katie Pairy Fruits incorporated has a $3,00022-year bond outstanding with a nominal yield of 15 percent (coupon equals 15%$3,000 = $450 per year). Assume that the current market required interest rate on similar bonds is now only 12 percent. Use Appendix B and Appendix D for an approximate answer but caiculate your final answer using the formula and financial calculator methods. a. Compute the current price of the bond. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual. b. Find the present value of 3 percent $3,000 (or $90 ) for 22 years at 12 percent. The $90 is assumed to be an annual payment. Add this value to $3,000 Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual

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