A. Ivan plans to invest on bonds with P 4, 000,000 face value on January 1, 2022, The bond has life of 4 years starting January 1, 2022 and pays an interest of 7% semi-annually every June 30 and...

Extracted text: A. Ivan plans to invest on bonds with P 4, 000,000 face value on January 1, 2022, The bond has life of 4 years starting January 1, 2022 and pays an interest of 7% semi-annually every June 30 and December 31. The bonds' effective interest rate is 8%. Required: Compute for the following: 1. Expected market Price of the bond 2. Amount of premium or discount of the bond