6. An investor paid Php1,100 for a Php1,000 bond that pays Php40 a year. In 20 years, the bond will be redeemed for Php1,050. What net rate of interest will the investor obtain on his investment? Solve by interpolating between 3% and 4%. Do not use Shift+Solve. Express your answer to 4 decimal places.

6. An investor paid Php1,100 for a Php1,000 bond that pays Php40 a year. In 20 years, the bond will be redeemed for Php1,050. What net rate of interest will the investor obtain on his investment? Solve by interpolating between 3% and 4%. Do not use Shift+Solve. Express your answer to 4 decimal places.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter31: Capital Markets

Section: Chapter Questions

Problem 2E

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