P1,000 face-value bond with coupon rate of 8% paying interest semi-annual arket price of P1,050. Compute for (a) semi-annual interest earned ain and (c) the rate of return
P1,000 face-value bond with coupon rate of 8% paying interest semi-annual arket price of P1,050. Compute for (a) semi-annual interest earned ain and (c) the rate of return
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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![1. A P1,000 face-value bond with coupon rate of 8% paying interest semi-annually has a current
market price of P1,050. Compute for (a) semi-annual interest earned
gain
b) rate of capital
and (c) the rate of return](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53857926-f701-4646-994a-b3680003d2dc%2Ff20c1e4e-224f-4a5b-8e27-c6737e16ced2%2Ffu1teud_processed.png&w=3840&q=75)
Transcribed Image Text:1. A P1,000 face-value bond with coupon rate of 8% paying interest semi-annually has a current
market price of P1,050. Compute for (a) semi-annual interest earned
gain
b) rate of capital
and (c) the rate of return
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