Engr. Budoy bought a bond having a face value of P 10,000 for P 9,700. The bond rate was 14% nominal and interest payments were made to him semi-annually for a total of 7 years. At the end of the seventh year, he sold the bond to a friend at a price that resulted a yield of 16% nominal on his investment. What was the
Engr. Budoy bought a bond having a face value of P 10,000 for P 9,700. The bond rate was 14% nominal and interest payments were made to him semi-annually for a total of 7 years. At the end of the seventh year, he sold the bond to a friend at a price that resulted a yield of 16% nominal on his investment. What was the
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 1CQQ
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8. Engr. Budoy bought a bond having a face value of P 10,000 for P 9,700. The bond rate was 14% nominal and interest payments were made to him semi-annually for a total of 7 years. At the end of the seventh year, he sold the bond to a friend at a price that
resulted a yield of 16% nominal on his investment. What was the selling price?
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