H1 64. The P 1,000,000 face value ABC bond has a coupon rate of 6%, with interest paid annually, and matures in 5years. If the bond is priced to yield 8%, what is the bond's value today (cash price)?a. P 920 thousandb.cd.P 940 thousandP 960 thousandP 980 thousand

Given, The face value of bond is P 1,000,000. (1000 thousand) Coupon rate is 6% term to maturity is…

Answered: - The P 1,000,000 face value ABC bond…

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 10P

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- The P 1,000,000 face value ABC bond has a coupon rate of 6%, with interest paid annually, and matures in 5 years. If the bond is priced to yield 8%, what is the band's value today (cash price)? a. P 920 thousand b. P 940 thousand C. P 960 thousand P 980 thousand d.