Engineering Board Exam Reviewer · Bonds · easy
Find the annual coupon payment of a P20,000 bond with a coupon rate of 7%.
- P1,400
- P1,200
- P1,600
- P2,000
Answer
A. P1,400
Solution
Coupon =20000(0.07)=P1,400.
More Bonds questions
- A bond has a face value of P100,000 and a coupon rate of 9% payable annually, maturing in 3 years. Find the price of the bond if the yield…
- A P50,000 bond with a coupon rate of 10% matures in 4 years. If the yield rate required by investors is 12%, find the price of the bond.
- Which of the following best describes a bond's "face value" (also called par value)?
- A P10,000 bond pays 8% annual coupon interest and matures in 5 years. If the prevailing yield rate is also 8%, find the price of the bond.
- A P5,000 bond pays 6% annual interest and matures in 10 years. If the required yield rate is 8%, is the bond priced at a premium or a…