Question: CONCEPTUAL EXERCISES: BOND 4. A bond a has a par value of P100, a coupon rate of 10.75% and matures in 5 years. If

CONCEPTUAL EXERCISES: BOND 4. A bond a has a par value of

CONCEPTUAL EXERCISES: BOND 4. A bond a has a par value of P100, a coupon rate of 10.75% and matures in 5 years. If interest is paid annually and the required rate of return is 10%, what is the bond's value by general constant rate formula? 5. A bond P1,000 wit 9% interest that is due on April 1, 2022, with interest each April 1 and October 1, issued on April 1, 2002. Calculate the intrinsic value of the debt assuming market rate of return is 10%?

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