11. Two years ago, you bought a fifteen- year bond at its par value of P1,000. The coupon rate on this bond is 9% payable annually. Today (just after receiving the second annual coupon payment), the current yield on the bond is 7.5%. What is the value of the bond today?
11. Two years ago, you bought a fifteen- year bond at its par value of P1,000. The coupon rate on this bond is 9% payable annually. Today (just after receiving the second annual coupon payment), the current yield on the bond is 7.5%. What is the value of the bond today?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![11. Two years ago, you bought a fifteen-
year bond at its par value of P1,000.
The coupon rate on this bond is 9%
payable annually. Today (just after
receiving the second annual coupon
payment), the current yield on the bond
is 7.5%. What is the value of the bond
today?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11014291-7e17-411f-974f-1d0e7c196ca3%2F2556c088-9611-47ab-bd34-12eaa4783fa5%2Fb282jht_processed.jpeg&w=3840&q=75)
Transcribed Image Text:11. Two years ago, you bought a fifteen-
year bond at its par value of P1,000.
The coupon rate on this bond is 9%
payable annually. Today (just after
receiving the second annual coupon
payment), the current yield on the bond
is 7.5%. What is the value of the bond
today?
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