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Assessment Week 182 1. Solve the following: Show your process. 1. ABC Inc. Issued a bond with a face value of P50,000 and pays coupon
Assessment Week 182 1. Solve the following: Show your process. 1. ABC Inc. Issued a bond with a face value of P50,000 and pays coupon at a rate of 2% annually. If the bond will mature in 7 years and the required annual YTM is 5%%, what must be the price of the bond? 2. A government bond with P10,000 face value pays 3% coupon rate quarterly. If the bond matures in 10 years, how much is the coupon paid every quarter? Find the total coupon payment during the life of the bond
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