Mr. Romualdo bought a bond having a face value of P1000 for P970. 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?
Mr. Romualdo bought a bond having a face value of P1000 for P970. 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?
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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Transcribed Image Text:Mr. Romualdo bought a bond having a face value of P1000 for P970. 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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