rate of return of 10%. The coupon payment per quarter would be?

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
Section: Chapter Questions
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1. 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in
October 16, 2020. This means that the term of the bond is 5 years.
Coupon payments will be made every quarter with a rate of 6.21% per
annum. Assume that the face value is P10,000 and investor have required
rate of return of 10%. The coupon payment per quarter would be?
a. P621.00
b. P155.25
c. P310.50
d. P250.00
2. Using information in #1, the price for each unit of bond would be closest
to?
a. P10,000
b. P16,102.49
c. P8,522.93
d. P10,943.14
Transcribed Image Text:1. 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in October 16, 2020. This means that the term of the bond is 5 years. Coupon payments will be made every quarter with a rate of 6.21% per annum. Assume that the face value is P10,000 and investor have required rate of return of 10%. The coupon payment per quarter would be? a. P621.00 b. P155.25 c. P310.50 d. P250.00 2. Using information in #1, the price for each unit of bond would be closest to? a. P10,000 b. P16,102.49 c. P8,522.93 d. P10,943.14
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