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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A bond with a par value of P3,000 and with a bond rate of 10% payable annually is to be redeemed at P3,080 at the end of 8 years from now. If it is sold now, what should be the selling price to yield 7%?
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- A 1,000 bond with 6% semiannual coupons is redeemable at 1,050 in 20 years. The bond is selling for 975. (a) What is the nominal annual yield rate convertible semiannually to a purchaser who buys the bond at this price? (b) What price should be paid to earn a nominal annual rate of 7% convertible semiannually.arrow_forwardConsider a $100 face value 10-year bond with 8% semiannual coupons, and redemption value$120. The yield rate convertible semiannually is 6%, and the first coupon is paid on July 1st, 2018. Findthe price on November 15th, 2021.arrow_forward2. The quoted price of a bond with a coupon rate of 4.5%, payable semi-annually, maturing on March 1, 2023, is $990. The last coupon payment was made on March 1, 2019. If you buy the bond on July 1, 2019, what is the total price you must pay for the bond?arrow_forward
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