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en percent. P195,000 interest is receivable every end of six months for five years. Determine the buying price of the bond. Problem 2. Refer to problem number one. If Mala Inse Corp. sells the bonds after holding it for two years, how much should Mala Inse sell the bonds at P5,000 above the said bond price? Golution: ANSWER O PROBLEM:

en percent. P195,000 interest is receivable every end of six months for five years. Determine the buying price of the bond. Problem 2. Refer to problem number one. If Mala Inse Corp. sells the bonds after holding it for two years, how much should Mala Inse sell the bonds at P5,000 above the said bond price? Golution: ANSWER O PROBLEM:

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 8PROB
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Problem 1. Mala Inse Corporation is contemplating to buy P2,000,000 par value bonds at an effective rate of ten percent. P195,000 interest is receivable every end of six months for five years. Determine the buying price of the bond. Problem 2. Refer to problem number one. If Mala Inse Corp. sells the bonds after holding it for two years, how much should Mala Inse sell the bonds at P5,000 above the said bond price? Solution: ANSWER ONLY PROBLEM 2
Transcribed Image Text:Problem 1. Mala Inse Corporation is contemplating to buy P2,000,000 par value bonds at an effective rate of ten percent. P195,000 interest is receivable every end of six months for five years. Determine the buying price of the bond. Problem 2. Refer to problem number one. If Mala Inse Corp. sells the bonds after holding it for two years, how much should Mala Inse sell the bonds at P5,000 above the said bond price? Solution: ANSWER ONLY PROBLEM 2
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