Engineering Board Exam Reviewer · Bonds · easy
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 rate is 9%.
- P100,000
- P95,000
- P105,000
- P110,000
Answer
A. P100,000
Solution
Since the coupon rate equals the yield rate, the price equals the face value: P100,000.
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