A bond with a par value of P5,000 and with a bond rate of 9% payable annually is sold now for P5,100. If the yield is to be 12%, how much should the redemption price be at the end of 10 years?
A bond with a par value of P5,000 and with a bond rate of 9% payable annually is sold now for P5,100. If the yield is to be 12%, how much should the redemption price be at the end of 10 years?
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
Problem 2P
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. A bond with a par value of P5,000 and with a bond rate of 9% payable annually is sold now for P5,100. If the yield is to be 12%, how much should the redemption price be at the end of 10 years?
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