Mr. Yap bought a bond having a face value of Php 1,000.00 for Php 970.00. The bond rate was 14% nominal and dividends were made to him semiannually for a total of 7 years. At the end of the seventh year, he sold the bond to a friend at a price that resulted a yield of 16% nominal on his investment. 

What was the selling price?

Answer rating: 100% (QA)

SOLUTION To find the selling price of the bond we need to use the formula for the present value of a... View the full answer