A bond has an interest rate of 15% for the next 5 years The current cost and par value of the bond is Php700,000. Requirement: Fill in the blanks and compute the following a. Present Value of the Investment b. Net present vatue of the investment Payments Present Value Factor Present Value Period 1st vear 2nd year 3rd year 4th yeat Sth year Sth year Present Value Net Present value Show your solutions
A bond has an interest rate of 15% for the next 5 years The current cost and par value of the bond is Php700,000. Requirement: Fill in the blanks and compute the following a. Present Value of the Investment b. Net present vatue of the investment Payments Present Value Factor Present Value Period 1st vear 2nd year 3rd year 4th yeat Sth year Sth year Present Value Net Present value Show your solutions
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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Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
Question
Transcribed Image Text:A bond has an interest rate of 15% for the next 5 years The current cost and par value of
the bond is Php700,000.
Requirement: Fill in the blanks and compute the following
a. Present Value of the Investment
b. Net present vatue of the investment
Period
Payments
Present Value Factor
Present Value
Ist vear
2nd year
3rd year
4th yeat
Sth year
Sth year
Present Value
Net Present value
Show your solutions
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