Assume that you wish to purchase a 30-year bond that has a maturity value of P1,000 and a coupon interest rate of 9.5%, paid semiannually. If you require a 6.75% rate of return on this investment, what is the maximum price that you should be willing to pay for this bond? P675 O P1,450 O P1,352 O P1,111

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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Assume that you wish to purchase a 30-year bond that has a maturity value of P1,000 and
a coupon interest rate of 9.5%, paid semiannually. If you require a 6.75% rate of return on
this investment, what is the maximum price that you should be willing to pay for this
bond?
O P675
O P1,450
O P1.352
O P1,111
Transcribed Image Text:Assume that you wish to purchase a 30-year bond that has a maturity value of P1,000 and a coupon interest rate of 9.5%, paid semiannually. If you require a 6.75% rate of return on this investment, what is the maximum price that you should be willing to pay for this bond? O P675 O P1,450 O P1.352 O P1,111
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