A bond with a par value of P2,000 and with a bond rate of 9% payable annually is to be redeemed at P2,200 at the end of 6 years from now. If it is sold now, what should be the selling price to yield 8%?
A bond with a par value of P2,000 and with a bond rate of 9% payable annually is to be redeemed at P2,200 at the end of 6 years from now. If it is sold now, what should be the selling price to yield 8%?
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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Transcribed Image Text:A bond with a par value of P2,000 and with a bond
rate of 9% payable annually is to be redeemed at
P2,200 at the end of 6 years from now. If it is sold
now, what should be the selling price to yield 8%?
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