Given the following data of a bond: Face amount P1, 500 Bond Interest rate 6% Interest paid semi-annually P45.00 Terms 10 years Up for sale at the end of 3 years, 7 years to go. The buyer of the bond...

Given the following data of a bond:<br>Face amount<br>P1, 500<br>Bond Interest rate<br>6%<br>Interest paid semi-annually<br>P45.00<br>Terms<br>10<br>years<br>Up for sale at the end of 3 years, 7 years to go.<br>The buyer of the bond wishes to earn at the rate of 8% a year compounded semi-annually. What is its fair value at the end of the third year<br>when it is offered for sale?<br>O P1,975.34<br>O P633.79<br>O P2,366.21<br>O P1,341.55<br>

Extracted text: Given the following data of a bond: Face amount P1, 500 Bond Interest rate 6% Interest paid semi-annually P45.00 Terms 10 years Up for sale at the end of 3 years, 7 years to go. The buyer of the bond wishes to earn at the rate of 8% a year compounded semi-annually. What is its fair value at the end of the third year when it is offered for sale? O P1,975.34 O P633.79 O P2,366.21 O P1,341.55

Jun 10, 2022

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Given the following data of a bond: Face amount P1, 500 Bond Interest rate 6% Interest paid semi-annually P45.00 Terms 10 years Up for sale at the end of 3 years, 7 years to go. The buyer of the bond...

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