Find the amount of the semi-annual coupon for a P200,000 bond which pays 5% convertible semi-annually for its coupons.
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Answer:Given: F = 200,000
r= 5% = 0.05
Find: semi - annual coupon
Solution :
Annual coupon amount: 200,000 (0.05) =10,000
10,000 (1/2) = 5,000
Thus, the amount of the semi- annual coupon is P 5,000.00
Explanation:
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