Mr. Arturo bought a bond having a face value of Php3500 for Php3300. The bond rate was 16% nominal and interest payments were made to him semiannually for a total of seven years. At the end of the 7th year, he sold the bond to a friend at a price that resulted a yield of 20% nominal on his investment what was the selling price?
Mr. Arturo bought a bond having a face value of Php3500 for Php3300. The bond rate was 16% nominal and interest payments were made to him semiannually for a total of seven years. At the end of the 7th year, he sold the bond to a friend at a price that resulted a yield of 20% nominal on his investment what was the selling price?
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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Mr. Arturo bought a bond having a face value of Php3500 for Php3300. The bond rate was 16% nominal and interest payments were made to him semiannually for a total of seven years. At the end of the 7th year, he sold the bond to a friend at a price that resulted a yield of 20% nominal on his investment what was the selling price?
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