Bulldogs Inc. wants to establish a bond portfolio consisting only of BDO bonds which has a maturity of 5 years. Bulldogs wants to buy 3 bonds of BDO, with a par value of P1,000 each. These bonds pay 5% yearly interest and has a yield to maturity of 10%. The total value of the bond portfolio after 2 years is (No rounding-off of present value; final answer round to 2 decimal places) a. 2,752,.69 b. 2,626.97 c. 2,256.69 d. 2,111.97

Bulldogs Inc. wants to establish a bond portfolio consisting only of BDO bonds which has a maturity of 5 years. Bulldogs wants to buy 3 bonds of BDO, with a par value of P1,000 each. These bonds pay 5% yearly interest and has a yield to maturity of 10%. The total value of the bond portfolio after 2 years is (No rounding-off of present value; final answer round to 2 decimal places) a. 2,752,.69 b. 2,626.97 c. 2,256.69 d. 2,111.97

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter22: Corporations: Bonds

Section: Chapter Questions

Problem 1CE

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