Cha, a registered engineer wanted to establish her own business. She planned to borrow a long term fund thru the use of bonds. A P350,000, 12% bond is being paid on dividends on semi-annual basis. This will be redeemed at P385,000 on September 21, 2019. It was bought on September 21, 2016 to yield an 8% interest. Using the data given, find the price of the bond.
Cha, a registered engineer wanted to establish her own business. She planned to borrow a long term fund thru the use of bonds. A P350,000, 12% bond is being paid on dividends on semi-annual basis. This will be redeemed at P385,000 on September 21, 2019. It was bought on September 21, 2016 to yield an 8% interest. Using the data given, find the price of 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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Cha, a registered engineer wanted to establish her own business. She planned to borrow a long term fund thru the use of bonds. A P350,000, 12% bond is being paid on dividends on semi-annual basis. This will be redeemed at P385,000 on September 21, 2019. It was bought on September 21, 2016 to yield an 8% interest. Using the data given, find the price of the bond.
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