pany sold a P9,500,000 issue of 20-year bonds with a total face value of P10,000,000. The bonds pay a semiannual interest rate of 16 percent. The corporation wants to create a sinking fund to pay off the bond issue, so it will make semiannual deposits that will earn 12 percent compounded semiannually. Calculate the annual interest and redemption costs for these bonds. do not use excel, use formul
pany sold a P9,500,000 issue of 20-year bonds with a total face value of P10,000,000. The bonds pay a semiannual interest rate of 16 percent. The corporation wants to create a sinking fund to pay off the bond issue, so it will make semiannual deposits that will earn 12 percent compounded semiannually. Calculate the annual interest and redemption costs for these bonds. do not use excel, use formul
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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Question
A company sold a P9,500,000 issue of 20-year bonds with a total face value of
P10,000,000. The bonds pay a semiannual interest rate of 16 percent. The corporation
wants to create a sinking fund to pay off the bond issue, so it will make semiannual
deposits that will earn 12 percent compounded semiannually. Calculate the annual
interest and redemption costs for these bonds.
do not use excel, use formula
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