A bond has an interest rate of 15% for the next 5 years The current cost and par value of the bond is Php700,000. Requirement: Fill in the blanks and compute the following a. Present Value of the Investment b. Net present vatue of the investment Payments Present Value Factor Present Value Period 1st vear 2nd year 3rd year 4th yeat Sth year Sth year Present Value Net Present value Show your solutions

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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A bond has an interest rate of 15% for the next 5 years The current cost and par value of
the bond is Php700,000.
Requirement: Fill in the blanks and compute the following
a. Present Value of the Investment
b. Net present vatue of the investment
Period
Payments
Present Value Factor
Present Value
Ist vear
2nd year
3rd year
4th yeat
Sth year
Sth year
Present Value
Net Present value
Show your solutions
Transcribed Image Text:A bond has an interest rate of 15% for the next 5 years The current cost and par value of the bond is Php700,000. Requirement: Fill in the blanks and compute the following a. Present Value of the Investment b. Net present vatue of the investment Period Payments Present Value Factor Present Value Ist vear 2nd year 3rd year 4th yeat Sth year Sth year Present Value Net Present value Show your solutions
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