Read and analyze the given scenarios and provide what is asked. Show your complete solutions in the space provided below.

1.Entero Company issued bonds with a 6% nominal rate for a Php 1,000 par value bond payable for six (6) years. The bonds were sold for P1,250. How much is the interest rate of the said bond in the market?

2.Assume instead that Entero Company issued bonds with a 6% nominal rate for a P1,000 par value bond payable for 10 years. The bonds were sold for P700. How much is the interest rate of the said bond in the market?