Hewitt Packing Company has an issue of $1,000 par value bonds with a 14 percent annual coupon interest rate. The issue has ten years remaining to the maturity date. Bonds of similar risk are currently

The current value of each Hewitt bond is $1,116. Explanation: To calculate the current value of the bond, we need to use the present value formula: PV = C / (1 + r)^t + F / (1 + r)^t where PV is the present value, C is the coupon payment ($140 per year), r is the rate of return (12%), t is the number of years remaining until maturity (10), and F is the face value ($1,000). Plugging in the values, we get: PV = 140 / (1 + 0.12)^1 + 140 / (1 + 0.12)^2 + ... + 140 / (1 + 0.12)^10 + 1,000 / (1 + 0.12)^10 PV = 1,116 Therefore, the current value of each Hewitt bond is $1,116.