A company has issued 10-year bonds, with a face value of P1,000,000 in P1,000 units. Interest at 16% is paid quarterly. If an investor desires to earn 20% nominal interest on P100,0000 worth of these...

Extracted text: A company has issued 10-year bonds, with a face value of P1,000,000 in P1,000 units. Interest at 16% is paid quarterly. If an investor desires to earn 20% nominal interest on P100,0000 worth of these bonds, what would 2. the selling price have to be? 3. A P1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be redeemed at par at the end of this period. If it is sold now for P1,390, determine the yield at this price. 4. A young mechanical engineer is considering establishing his own small company. An investment of P400,000 will be required, which will be recovered in 15 years. It is estimated that sales will be P800,000 per year and that operating expenses will be as follows: