- The P 1,000,000 face value ABC bond has a coupon rate of 6%, with interest paid annually, and matures in 5 years. If the bond is priced to yield 8%, what is the band's value today (cash price)? a. P 920 thousand b. P 940 thousand C. P 960 thousand P 980 thousand d.

- The P 1,000,000 face value ABC bond has a coupon rate of 6%, with interest paid annually, and matures in 5 years. If the bond is priced to yield 8%, what is the band's value today (cash price)? a. P 920 thousand b. P 940 thousand C. P 960 thousand P 980 thousand d.

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

64. The P 1,000,000 face value ABC bond has a coupon rate of 6%, with interest paid annually, and matures in 5
years. If the bond is priced to yield 8%, what is the bond's value today (cash price)?
a. P 920 thousand
b.
c
d.
P 940 thousand
P 960 thousand
P 980 thousand

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