1. 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in October 16, 2020. This means that the term of the bond is 5 years. Coupon payments will be made every quarter with a rate of 6.21%...

1. 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in<br>October 16, 2020. This means that the term of the bond is 5 years.<br>Coupon payments will be made every quarter with a rate of 6.21% per<br>annum. Assume that the face value is P10,000 and investor have required<br>rate of return of 10%. The coupon payment per quarter would be?<br>a. P621.00<br>b. P155.25<br>c. P310.50<br>d. P250.00<br>2. Using information in #1, the price for each unit of bond would be closest<br>to?<br>a. P10,000<br>b. P16,102.49<br>c. P8,522.93<br>d. P10,943.14<br>

Extracted text: 1. 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in October 16, 2020. This means that the term of the bond is 5 years. Coupon payments will be made every quarter with a rate of 6.21% per annum. Assume that the face value is P10,000 and investor have required rate of return of 10%. The coupon payment per quarter would be? a. P621.00 b. P155.25 c. P310.50 d. P250.00 2. Using information in #1, the price for each unit of bond would be closest to? a. P10,000 b. P16,102.49 c. P8,522.93 d. P10,943.14

Jun 06, 2022

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1. 8990 Holdings, Inc. issued a bond on July 16, 2016 that matures in October 16, 2020. This means that the term of the bond is 5 years. Coupon payments will be made every quarter with a rate of 6.21%...

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