Ivan plans to invest on bonds with P 6,000,000 face value on January 1, 2023. The bond has life of 4 years starting January 1, 2023 and pays an interest of 7% semi-annually every June 30 and December 31. The bonds' effective interest rate is 9%. Required: Compute for the following: 1. Expected market Price of the bond 2. Amount of premium or discount of the bond

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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NOTE: DONT USE EXCEL!! A. Ivan plans to invest on bonds with P 6,000,000 face value on January 1, 2023. The bond has life of 4 years starting January 1, 2023 and pays an interest of 7% semi-annually every June 30 and December 31. The bonds' effective interest rate is 9%. Required: Compute for the following: 1. Expected market Price of the bond 2. Amount of premium or discount of the bond
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