Answered: 6. A P10,000, 8% bond pays dividends…

6. A P10,000, 8% bond pays dividends semi- annually and will be redeemed at 110% on April 29, 2027. It is bought on April 29, 2021 to yield 6% compounded annually. Find the price when it was bought.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 5P

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Question

6. A P10,000, 8% bond pays dividends semi-
annually and will be redeemed at 110% on April
29, 2027. It is bought on April 29, 2021 to yield
6% compounded annually. Find the price when
it was bought.

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