Question

9. A bond promises to pay the bondholder equal payments of P6,000 in six-month
intervals for 30 years. If the face amount is P450,000, what is the fair price of the
bond? Assume that the market rate is 2% compounded annually.
please help me ​

Answer 1

Answer:

We have to work with money every day. While balancing your checkbook or calculating your monthly expenditures on espresso requires only arithmetic, when we start saving, planning for retirement, or need a loan, we need more mathematics.

Simple Interest

Discussing interest starts with the principal, or amount your account starts with. This could be a starting investment, or the starting amount of a loan.