4. SAU Co., recently issued a 10-year bond with a face value of P50,000 with a coupon rate of 8% annually. The investors' required rate of return is 14%. The value of the bond would be closest to: a. P 70,130 d. P 34,352 5. MXT Co., issued a 7-year bond with a face value of P30,000 with a coupon rate of 7%. Currently the bond is quoted at 105. The current yield would be: 5% b. P 50,000 e. P61,568 с. Р48,153 f. P 32,705 a. b. 6.67% с. 7.80% d. 13.33% e. 16.67% f. 8.75%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
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4. SAU Co., recently issued a 10-year bond with a face value of P50,000 with a coupon rate of 8%
b. P 50,000
e. P61,568
5. MXT Co., issued a 7-year bond with a face value of P30,000 with a coupon rate of 7%. Currently the
annually. The investors' required rate of return is 14%. The value of the bond would be closest to:
P 70,130
d. P 34,352
c. P48,153
f. P 32,705
а.
bond is quoted at 105. The current yield would be:
5%
a.
b. 6.67%
с.
7.80%
d. 13.33%
e. 16.67%
f.
8.75%
Transcribed Image Text:4. SAU Co., recently issued a 10-year bond with a face value of P50,000 with a coupon rate of 8% b. P 50,000 e. P61,568 5. MXT Co., issued a 7-year bond with a face value of P30,000 with a coupon rate of 7%. Currently the annually. The investors' required rate of return is 14%. The value of the bond would be closest to: P 70,130 d. P 34,352 c. P48,153 f. P 32,705 а. bond is quoted at 105. The current yield would be: 5% a. b. 6.67% с. 7.80% d. 13.33% e. 16.67% f. 8.75%
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