4. A bond with a par value of Php1,000 with a bond rate of 10% payable annually is sold now for Php1,080. If the yield is to be 12%, how much should the redemption price be at the end of 8 years?

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
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4. A bond with a par value of Php1,000 with a bond rate of 10% payable annually is sold now for
Php1,080. If the yield is to be 12%, how much should the redemption price be at the end of 8
years?
Transcribed Image Text:4. A bond with a par value of Php1,000 with a bond rate of 10% payable annually is sold now for Php1,080. If the yield is to be 12%, how much should the redemption price be at the end of 8 years?
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