Activities 只 1. Ms. Rodriguez invested in a PHP2,000 bond with a coupon rate and effective rate of 5%. How much is the issue price? 2. You have a one year PHP1,000 bond with a coupon rate of 5% and was offered at an effective rate of 6%. How much is the issue price? 3. Mr. Garcia invested in a P1,000 bond for one year with a coupon rate of 7% and was offered at an effective rate of 5%. How much should he pay upfront? (Issue price) 4. On January 1, 2015, Mac Inc. issued 3,000,000 bonds with a coupon rate of 8% maturing in 4 years. The interest is paid annually, and the market interest rate at the date of issue was 11%. What is the issue price of the bond? Prepare the 4 year amortization schedule for the bond.
Activities 只 1. Ms. Rodriguez invested in a PHP2,000 bond with a coupon rate and effective rate of 5%. How much is the issue price? 2. You have a one year PHP1,000 bond with a coupon rate of 5% and was offered at an effective rate of 6%. How much is the issue price? 3. Mr. Garcia invested in a P1,000 bond for one year with a coupon rate of 7% and was offered at an effective rate of 5%. How much should he pay upfront? (Issue price) 4. On January 1, 2015, Mac Inc. issued 3,000,000 bonds with a coupon rate of 8% maturing in 4 years. The interest is paid annually, and the market interest rate at the date of issue was 11%. What is the issue price of the bond? Prepare the 4 year amortization schedule for the bond.
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:Activities
1. Ms. Rodriguez invested in a PHP2,000 bond with a coupon rate and effective rate
of 5%. How much is the issue price?
2. You have a one year PHP1,000 bond with a coupon rate of 5% and was offered at
an effective rate of 6%. How much is the issue price?
3. Mr. Garcia invested in a P1,000 bond for one year with a coupon rate of 7% and
was offered at an effective rate of 5%. How much should he pay upfront? (Issue
price)
三
4. On January 1, 2015, Mac Inc. issued 3,000,000 bonds with a coupon rate of 8%
maturing in 4 years. The interest is paid annually, and the market interest rate at
the date of issue was 11%. What is the issue price of the bond? Prepare the 4 year
amortization schedule for the bond.
()
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