MARJ Co. has a bonds outstanding with maturity value of P1,000. The effective interest is determined to be 5%, and interest is paid annually. The bonds mature in 5 years, and its current market value is P870.12. What is the approximate annual coupon interest rate?

MARJ Co. has a bonds outstanding with maturity value of P1,000. The effective interest is determined to be 5%, and interest is paid annually. The bonds mature in 5 years, and its current market value is P870.12. What is the approximate annual coupon interest rate?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 1P

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