How much are you willing to buy these bonds

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Question - Coupon Rate and Discount Rate (YTM) Relationships - A company wants to raise money for a new project and decides to do so by issuing bonds with P1,000 par value, coupon rate of 5%, and matures in 5 years. The coupon payment are made annually at the end of each year.

How much are you willing to buy these bonds if the YTM is:

a) quoted at 105?

b) quoted at 107?

c) quoted at 103?

Reference no: EM133008862

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