Question
Bonds Problems Bond Valuation Problems: (Use 6 decimal places for PV factors) 1. Z entered in a 10-year bond with a face value of 100
Bonds Problems
Bond Valuation Problems: (Use 6 decimal places for PV factors)
1. Z entered in a 10-year bond with a face value of 100 shares with Php1,100 par value with a
coupon rate of 8% annually and effective interest rate of 10% annually. What is the carrying
value of the bond at investment period?
2. Y entered in an 8-year bond with a face value of 60 shares with Php2,000 par value with a
coupon rate of 9% annually and effective interest rate of 8% annually. What is the carrying value
of the bond at investment period?
3. X entered in a 5-year bond with a face value of 50 shares with Php1,500 par value with a coupon
rate of 10% annually and effective interest rate of 11% annually. What is the carrying value of
the bond at investment period?
4. W entered in a 10-year bond with a face value of 60 shares with Php1,200 par value with a
coupon rate of 9% annually and effective interest rate of 11% annually. Interest is paid semi-
annually. What is the carrying value of the bond at investment period?
5. V entered in a 5-year bond with a face value of 500 shares with Php1,000 par value, that will be
paid in equal annual installment until maturity, with a coupon rate of 8% annually and effective
interest rate of 6% annually. What is the carrying value of the bond at investment period?
6. U entered in a 5-year bond with a face value of 100 shares with Php1,200 par value and the
carrying value of the bond at investment period is Php118,225 with a coupon rate of 9%
annually. What is the effective interest rate of the bond?
7. T entered in a 5-year bond with a face value of 50 shares with Php1,000 par value, that will be
paid in equal annual installment until maturity, with a coupon rate of 8% annually and effective
interest rate of 10% annually. Interest is paid semi-annually. What is the carrying value of the
bond at investment period?
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