Final answer:
The question involves calculating the percentage of the total bond value that the repayment of principal represents for Exodus Limousine's bonds outstanding. The process requires the use of present value calculations with interest factors found in the provided appendices. Without the appendices, an exact numerical answer cannot be provided.
Step-by-step explanation:
The student is asking about the valuation of a bond outstanding issued by Exodus Limousine with a par value of $1,000, a coupon interest rate of 12%, and a maturity of 50 years. The market's current yield to maturity is at 15%.
To calculate the present value of the bond (which determines its market price), we use the present value formula for both the annuity (coupon payments) and the lump-sum repayment of the principal. The coupon payments are an annuity stream that can be valued using a present value interest factor for an annuity (PVIFA), while the repayment of the principal is a single future amount, valued using the present value interest factor (PVIF).
However, without Appendix B and Appendix D, we cannot provide the exact figures because these appendices likely contain the PVIFA and PVIF tables needed to find the factors for 50 years at 12% and 15%, respectively. Typically, these factors would be used to calculate the present values, which would then allow us to determine what percentage of the bond's total value is represented by the repayment of principal. The answer involves finding the present value of the principal repayment at maturity, dividing it by the total present value (which includes both the present value of annuity payments and the present value of the principal), and then multiplying by 100 to get a percentage. Remember to round the 'PV Factor' to three decimal places and the final answer to two decimal places.