Solution-What is the market price of the bond

What is the market price of the bond

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Reference no: EM133168229

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Q1. If you have a bond with a face value of P1,000 and a coupon rate of 5%, but the market interest rate for such bonds is 6%, will your bond sell at par, at a premium, or at a discount? Explain why.

Q2. If a three-year bond with a P1,000 face value has a coupon rate of 3.5%, and the current market interest rate is 2%, what is the market price of the bond? Coupon is paid annually.

Reference no: EM133168229

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What is the market price of the bond

Reference no: EM133168229

Reference no: EM133168229

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