A bond with a par value of P1000.00 will mature in 7 years with a bond rate of 8% payable annually. It is to be redeemed at par at the end of this period. If it is sold at P1050.00, determine the yield at this price.
A bond with a par value of P1000.00 will mature in 7 years with a bond rate of 8% payable annually. It is to be redeemed at par at the end of this period. If it is sold at P1050.00, determine the yield at this price.
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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A bond with a par value of P1000.00 will mature in 7 years with a bond rate of 8% payable annually. It is to be redeemed at par at the end of this period. If it is sold at P1050.00, determine the yield at this price. (Ans. 7.07%)
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