. WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 10% on a semiannual basis and a yield to maturity of 8% per annum compounded semiannually. The Macaulay duration would be closest to: a. 8 b. 4.20 c. 8.30 d. 8.19 e. 9.21 2. Using information in number 1, the modified duration would be closest to: a. 4.00 b. 7.88 c. 7.94 d. 8.20 e. 7.80

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
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Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...
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1. WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 10% on a semiannual basis and a yield to maturity of 8% per annum compounded semiannually. The Macaulay duration would be closest to:

a. 8

b. 4.20

c. 8.30

d. 8.19

e. 9.21

2. Using information in number 1, the modified duration would be closest to:

a. 4.00
b. 7.88
c. 7.94
d. 8.20
e. 7.80
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