1. 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in October 16, 2020. This means that the term of the bond is 5 years. Coupon payments will be made every quarter with a rate of 6.21% per annum. Assume that the face value is P10,000 and investor have required rate of return of 10%. The coupon payment per quarter would be?
1. 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in October 16, 2020. This means that the term of the bond is 5 years. Coupon payments will be made every quarter with a rate of 6.21% per annum. Assume that the face value is P10,000 and investor have required rate of return of 10%. The coupon payment per quarter would be?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![1. 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in
October 16, 2020. This means that the term of the bond is 5 years.
Coupon payments will be made every quarter with a rate of 6.21% per
annum. Assume that the face value is P10,000 and investor have required
rate of return of 10%. The coupon payment per quarter would be?
a. P621.00
b. P155.25
c. P310.50
d. P250.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd4bd417b-bd01-4781-a702-a45263d8a777%2Fb818a653-42d9-451a-a4f5-52f5dab545bf%2Fe997mcr_processed.png&w=3840&q=75)
Transcribed Image Text:1. 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in
October 16, 2020. This means that the term of the bond is 5 years.
Coupon payments will be made every quarter with a rate of 6.21% per
annum. Assume that the face value is P10,000 and investor have required
rate of return of 10%. The coupon payment per quarter would be?
a. P621.00
b. P155.25
c. P310.50
d. P250.00
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