5. A bond with a par value of P 100,000 and with a bond rate of 10% payable annually is sold now for P 108,000. If yield is to be 12%, how much should the redemption price be at the end of 8 years?
5. A bond with a par value of P 100,000 and with a bond rate of 10% payable annually is sold now for P 108,000. If yield is to be 12%, how much should the redemption price be at the end of 8 years?
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter7: Bonds And Their Valuation
Section: Chapter Questions
Problem 1P
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5. A bond with a par value of P 100,000 and with a bond rate of 10% payable annually is sold now for P 108,000. If yield is to be 12%, how much should the redemption price be
at the end of 8 years?
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