What would be the selling price of a 10-year bond with a face value of P100.000, interest at 20% which is paid quarterly if an investor desires to earn a 16% nominal interest on P100,000 worth of these bonds? a. P82 836 b. P119.793 c. P112 835 d. P94,287
What would be the selling price of a 10-year bond with a face value of P100.000, interest at 20% which is paid quarterly if an investor desires to earn a 16% nominal interest on P100,000 worth of these bonds? a. P82 836 b. P119.793 c. P112 835 d. P94,287
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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Question
What would be the selling price of a 10-year bond with a face value of
P100.000, interest at 20% which is paid quarterly if an investor desires to
earn a 16% nominal interest on P100,000 worth of these bonds?
a. P82 836
b. P119.793
c. P112 835
d. P94,287
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