What is the present value of the coupon payments? What is the present value of the face value of the bond? What is the price of the bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4MC
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JEFDE  issues a P1,000 corporate bond with an annual interest rate of P6%, quarterly interest payments for 3 The bond’s yield to maturity is 12%.

 

  1. What is the present value of the coupon payments?
  2. What is the present value of the face value of the bond?
  3. What is the price of the bond?
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