Question
1) Mark purchased a serial bond of CDE corporation. The following information pertains to this investment: Face value of the bond= P8,000,000; Date of investment=
1) Mark purchased a serial bond of CDE corporation. The following information pertains to this investment: Face value of the bond= P8,000,000; Date of investment= Jan. 1, 2018; Bond matures every Dec.31 for P2,000,000; Interest are paid every Dec.31; Date of maturity= Dec. 31, 2021; Coupon rate= 8%; Required rate of return=6%. Find the value of the investment in January 1, 2018.
2) You decided that after college you are going to put up your own business, that is 3 years from now, and you would like to save at least P7,000 per year, beginning immediately. You are going to make 3 deposits in a savings account that gives a 5.2 percent interest. After 3 years of saving, how much will you have from today?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started