Suppose that a bond has a face value of Php300,000 and its maturity date is 20 years from now. The coupon rate is 2% payable semi-annually. Find the market value of this bond, assuming that the annual market rate is 6%.
Suppose that a bond has a face value of Php300,000 and its maturity date is 20 years from now. The coupon rate is 2% payable semi-annually. Find the market value of this bond, assuming that the annual market rate is 6%.
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 14P: Current Yield with Semiannual Payments
A bond that matures in 7 years sells for $1,020. The bond has...
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Suppose that a bond has a face value of Php300,000 and its maturity date is 20 years from now. The coupon rate is 2% payable semi-annually. Find the market value of this bond , assuming that the annual market rate is 6%.
a. Php153,378.20
b. Php163,378.20
c. Php273,678.20
d. Php303,375.20
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