ABC Corporation plans to issue pieces of 12%, 10-year, P1,000 face value bonds that pays semiannually. It will be sold at 104 but the underwriter will charge 2% on issue price. What is the cost of the bond based on the following methods?
Interpolation method using multiples of 1% (guess annual rates of whole percentage but halve this for semiannual rates).
Yield-to-maturity formula
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here