6. SBM Co., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. Currently, the bond is quoted 95 ½. The approximate yield to maturity would be closest to: a. 4.80% d. 9.69% 7. SAM Co., issued a 10 year bond with a face value of P50,000 with a coupon rate of 10% that will be paid semiannually. Currently the bond is quoted at 85. The approximate yield to maturity would be closest to: b. 9.5% e. 10.13% c. 8.87% f. 11.12% a. 10% d. 21.90% b. 15% e. 10.81% c. 6.22% f. 8.67% 8. SBM., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. The bond can be redeemed at year 3 at 101. Currently, the bond is quoted 95 2. The approximate yield to call would be closest to: 9.28% f. 11.03% a. 9.50% b. 3.67% с. d. 10.27% e. 18.75%

6. SBM Co., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. Currently, the bond is quoted 95 ½. The approximate yield to maturity would be closest to: a. 4.80% d. 9.69% 7. SAM Co., issued a 10 year bond with a face value of P50,000 with a coupon rate of 10% that will be paid semiannually. Currently the bond is quoted at 85. The approximate yield to maturity would be closest to: b. 9.5% e. 10.13% c. 8.87% f. 11.12% a. 10% d. 21.90% b. 15% e. 10.81% c. 6.22% f. 8.67% 8. SBM., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. The bond can be redeemed at year 3 at 101. Currently, the bond is quoted 95 2. The approximate yield to call would be closest to: 9.28% f. 11.03% a. 9.50% b. 3.67% с. d. 10.27% e. 18.75%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Smithson Co.'s Class A bonds have 10 years to go until maturity. They have a $1,000 face value and carry coupon rates of 8%. Approximately what do the bonds yield at the following prices? Assume bond coupons are paid semiannually. a. $770. b. $875. c. $1,000.
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 9.5% and that the coupon payments are to be made semannually.Assuming the appropriate YTM on the Sisyphean bond is 7.4%, then this bond will trede at A a premium. B. par c. a discount. D. none of the above
A 9 year bond with maturity value of $4300.02 and a yield rate of 4.9% was sold 18 months before maturity. If the seller earned 6% on the bond over the time that it was held, then for how much did they sell it? Give your answer rounded to the nearest cent
SBM., issued a 5-year bond with a face value of ₱10,000 with a coupon rate of 9%. The bond can be redeemed at year 3 at 101. Currently, the bond is quoted 95 1⁄2. The approximate yield to call wouldbe closest to: a. 9.50% b. 3.67% c. 9.28%d. 10.27% e. 18.75% f. 11.03%
1. Laberia Industries has outstanding a RM1,000 par value bond with an 8% coupon rate. The bond has 12 years remaining to its maturity date. A. If interest is paid annually, find the value of the bond when the required return is (1) 7%, (2) 8% and (3) 10%. B. Indicate for each case in part a whether the bond is selling at a discount, at a premium, or at its par value.
Ordinary bonds issued by PIMCO have a current quoted price of $830.50. The PIMCO bond has a 5.7% annual coupon rate. The YTM = 8.15% and the PIMCO bonds pays coupon twice per year. If the next coupon will be disbursed in exactly 6 months, the PIMCO bond will mature in: a. 5.19 years b. 29.14 years c. 19.96 years d. 20.77 years e. 10.39 years
(d) A RM1,000 callable bond with 9% coupons payable semi-annually was redeemed for RM1,100. The bond was bought for RM918 to yield a nominal rate of 10% convertible semi-annually. Calculate the number of years the bond was held. Provide your answer to the nearest integer.
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 9.7% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $1,010, then the YTM for this bond is closest to: A. 11.4% B. 7.6% C. 13.3% D. 9.5%
ANX Ltd just issued a 12-year 6% coupon bond. The face value of the bond is $1,000 and the bond makes semi-annual coupon payments. If the required return on the bond is 9%, what is the bond's price? Question 3Select one: A. $347.70 B. $782.57 C. None of these. D. $355.53 E. $785.18
CSM Corporation has a bond issue outstanding at the end of 2006. The bond has 10 years remaining to maturity and carries a coupon interest rate of 10%. Interest on the bond is compounded on a semiannual basis. The par value of the CSM bond is $1,000 and it is currently selling for $885.3. Find the Yield to Maturity? ÖÖ 11:03 /
a. An 8 ½%, 25-year, $1,000 bond is presently selling at a yield-to-maturity (YTM) of 9 4%. Assuming annual interest payments, what should you pay for the bond? b. What should you pay if interest is paid semiannually? c. Instead of a 25-year bond, they decide to issue 15-year bonds with annual payments. What should you pay for this bond if the YTM is 9 4%? Explain the differences in prices changes for (3a) and (3c) in terms of maturity. d. You buy an 8%, 15-year, $1,000 bond that pays interest annually when it is selling with a YTM of 7%. Immediately after you buy the bond, the YTM increases to 9%. What was the percentage change in the price of the bond? A bond has a market price that exceeds its face value. What type of bond is this? Describe the relationship between the coupon rate and the YTM. е.
2. Dhofar company issued bonds with 500 $ face value and 10 percent annual coupon rate The current yield to maturity on this bond is 5 percent and maturity date in 6 years. The current market price is 626.89.Calculate the expected change in the bond price if the yield to maturity is expected to decrease by 0.12 percent and the modified duration of this bond is 4.69 .

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS