A bond with a face value of P1,500,000 is sold at P1,400,000. If the bond matures in 5 years and pays 15 percent per annum, how much should the annual earning interest be? Round off to four decimal places in the final answer/s.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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cash flow diagram. Write answer on the space provided below.
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A bond with a face value of P1,500,000 is sold at P1,400,000. If
the bond matures in 5 years and pays 15 percent per annum, how
much should the annual earning interest be? Round off to four
decimal places in the final answer/s.
Transcribed Image Text:Use Given-Required-Solution in answering problems. Provide cash flow diagram. Write answer on the space provided below. Solution shall be uploaded at the end of the quiz. A bond with a face value of P1,500,000 is sold at P1,400,000. If the bond matures in 5 years and pays 15 percent per annum, how much should the annual earning interest be? Round off to four decimal places in the final answer/s.
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