Question
1. Marvel is an investor who wanted to purchase a bond. This bond has a maturity of 10 years, face value of P1,000 and pays
1. Marvel is an investor who wanted to purchase a bond. This bond has a maturity of 10 years, face value of P1,000 and pays interest of P60 twice a year/ every 6 months. How much he be willing to pay for this bond, if the nominal annual required rate of return is 10 percent with semiannual compounding? * 2. XYZ issued a bond with a par value of P1,000. The bond pays an interest of P35 each quarter, and has a maturity of 10 years. How much should the investor be willing to pay for this bond, if they have nominal annual required rate of return is 12 percent compounded quarterly? *
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