A bond with face value of P1,000.

00 is
selling at P950.00. The maturity of the
bond is one year.

Solution:
The given bond price is P950.00. After
one year, the owner of the given bond will
receive P1,000.00 which is the bond’s
face value. Hence, he has a gain of P50.
SOLVE!
the first one to get it right will receive a price <3
A bond with P5,000 face value pays 10%
coupon rate semi-annually. If the maturity of
the bond is 2 years, how much is the coupon
paid semi-annually? Find the total coupon
during the life of the bond.
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rr
A housing firm is selling a zero-coupon bond
at P9,800. If the face value of the bond is
P10,000 and the maturity is 2 years, find the
yield-to-maturity of the bond
The face value of a zero-coupon bond that will
mature in 6 months is P7, 000. If the YTM of
the bond is estimated to be 2.1%, what must
be the price of the bond today? Let P be the
price of the bond.
A bond listed today has maturity date exactly
5 years from now and face value of P10,000.
The bond also has a coupon rate of 5% paid at
the end of every year until maturity. If the
annual YTM of the bond is 2%, find the
expected price of the bond
 FORMULA
−𝑚𝑡
1− 1+𝑟 𝑉
𝑃=𝐶 + 𝑚𝑡
𝑟 1+𝑟
P = price of the bond
V = face value
C = coupon per period
t = maturity of years
m = number of period in a year
r = YTM per period
Company XYZ issued a corporate bond with a
coupon rate of 11% paying coupons semi-
annually and will mature in 7 years. The
required YTM for this security is 5% semi-
annually. What must be the price of the bond if
its face value is P20,000?
A bond with a face value of P100,000 pays 2%
coupon at the end of every year. If the
maturity of the bond is 7 years and you want a
5% YTM, what must be the price of the bond?
1) A government bond with P10,000 face value pays 3% coupon rate
quarterly. If the bond matures in 10 years, how much is the coupon paid
every quarter? Find the total coupon payment during the life of the bond.

2) Find the price of a zero-coupon bond which has a face value of P25,000,
has an annual YTM of 3%, and will mature in 15 years.

3) Find the price a bond which has a face value of P5,000, has an annual YTM
of 3.5%, pays coupon at a rate of 3% semi-annually, and will mature in 10
years.

4) ABC Inc. issued a bond with a face value of P50,000 and pays coupon at a
rate of 2% annually. If the bond will mature in 7 years and the require
annual YTM is 5%, what must be the price of the bond?