What would you pay for a $130,500 debenture bond that matures in 15 years and pays $13,050 a year in interest if you wanted to earn a yield of:
1.) 9%?
2.)10?
3.)11%
Part 2: LEW Company purchased a machine at a price of $102,000 by signing a note payable, which requires a single payment of $149,872 in 5 years.
Assuming annual compounding of interest, what rate of interest is being paid on the loan?