P1000.00 face-value bond pays dividends of P110.00 at the end of each year. If the bond matures in 20 years, what is the approximate bond value at an investment rate of 12% compounded annually? (Ans. P925.00)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 1P
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P1000.00 face-value bond pays dividends of P110.00 at the end of each year. If the bond matures in 20 years, what is the approximate bond value at an investment rate of 12% compounded annually? (Ans. P925.00)

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