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A bond with a par value of PhP1,287 with a bond rate of 8% is to be redeemed at PHP1,494 at the end of 7 years from now. If it will be sold now, what should be the selling price to earn an interest of 9%?

A bond with a par value of PhP1,287 with a bond rate of 8% is to be redeemed at PHP1,494 at the end of 7 years from now. If it will be sold now, what should be the selling price to earn an interest of 9%?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A bond with a par value of PhP1,287 with a bond rate of 8% is to be redeemed at PHP1,494 at the end of 7 years from now. If it will be sold now, what should be the selling price to earn an interest of 9%?
Transcribed Image Text:A bond with a par value of PhP1,287 with a bond rate of 8% is to be redeemed at PHP1,494 at the end of 7 years from now. If it will be sold now, what should be the selling price to earn an interest of 9%?
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