How much is the value of the bonds

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Q1. Bonds issued by the Optical Company have a par value of P1,000 which is also the amount of principal to be paid at maturity. The bonds are currently selling for 850. They have 10 years remaining to maturity. The annual interest payment is 9% (90). Determine the approximate yield to maturity.

Q2. Robert Brown is considering a bond investment in Southwest Technology Company. The 1,000 bonds have a quoted annual interest rate of 8% and the interest is paid semiannually. The yield to maturity on the bonds is 10% annual interest. There are 25 years to maturity. How much is the value of the bonds?

Reference no: EM133188976

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