Answered

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Mr Dela Torre is offered an 8% bond for P50,000. The bond has a face value of 50.000 with maturity date exactly 5 years from now. He receives P50,000 (0.08) / 2 = 2,000 every six months for 5 years.

If you were Mr. Dela Torre, would accept the offer? why or why not?​

Sagot :

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For six months, Mr. dela Torre receives P2,0000.

Then in 5 years,

He receives 2,000 × 10 = P20,000.

So, if I were him I would definitely accept the offer since I got P20,000 extra for P50,000 in 5 years.