Given the following data of a bond: Face amount P1, 500 Bond Interest rate 6% Interest paid semi-annually P45.00 Terms 10 years Up for sale at the end of 3 years, 7 years to go. The buyer of the bond wishes to earn at the rate of 8% a year compounded semi-annually. What is its fair value at the end of the third year when it is offered for sale? O P1,975.34 O P633.79 O P2,366.21 O P1,341.55

Given the following data of a bond: Face amount P1, 500 Bond Interest rate 6% Interest paid semi-annually P45.00 Terms 10 years Up for sale at the end of 3 years, 7 years to go. The buyer of the bond wishes to earn at the rate of 8% a year compounded semi-annually. What is its fair value at the end of the third year when it is offered for sale? O P1,975.34 O P633.79 O P2,366.21 O P1,341.55

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 5P

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