(Answered) Midland oil has 1000 par value bonds outstanding at 16

Finance

Midland Oil has $1,000 par value bonds outstanding at 16 percent interest. The bonds will mature in 20 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Compute the current price of the bonds if the present yield to maturity is: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)

Bond Pricea.8 percentb.14 percentc.11 percent

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