value: 0.90 points On March 1, 2008, Matt purchased $60,000 of Lawson Co.\'s 2%,

Question

value: 0.90 points On March 1, 2008, Matt purchased $60,000 of Lawson Co.'s 2%, 17-year bonds at face value. Lawson Co. has paid the annual interest due on the bonds regularly. On March to 6%, and Matt is considering selling the bonds. Use present value tables Table 64 and appropriate factor(s) from the tables provided.) 1, 2013, market interest rates had risen (Use Required: Calculate the market value of Matt's bonds on March 1, 2013 (Enter your answer rounded to decimals. (e.g., 32.16)) arket value 59,970.00 References eBook & Resources Hard

Explanation / Answer

Your computation is based on the following things :-

1) You assumed the Interest to be semi annually compounded

2) factor for last year to be taken for 6% not for 2%

Answer should be as follows :-

Date Particulars PV Factor Value Mar-08 Mar-09 1200 0.98 1176 Mar-10 1200 0.961 1153.2 Mar-11 1200 0.942 1130.4 Mar-12 1200 0.924 1108.8 Mar-13 1200 0.747 896.4 60000 0.747 44820 50284.8

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