9. 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. The bond is callable at year 5 at 98. Currently the bond is quoted at 85. The approximate yield to call would be closest to: a. 8.31% d. 17.03% 10. MAX Co., issued a 20-year bond with a face value of P100,000 with a coupon rate of 12%. Last year, the bond is quoted 95 ½ and it is expected that the bond will be quoted a 98 %. The total return this year would be closest to: 15.97% b. 6.89% с. 13.77% e. 1.71% f. 7.69% c. 3.40% f. 8.62% а. b. 15.40% d. 10.47% e. 12.10%

9. 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. The bond is callable at year 5 at 98. Currently the bond is quoted at 85. The approximate yield to call would be closest to: a. 8.31% d. 17.03% 10. MAX Co., issued a 20-year bond with a face value of P100,000 with a coupon rate of 12%. Last year, the bond is quoted 95 ½ and it is expected that the bond will be quoted a 98 %. The total return this year would be closest to: 15.97% b. 6.89% с. 13.77% e. 1.71% f. 7.69% c. 3.40% f. 8.62% а. b. 15.40% d. 10.47% e. 12.10%

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

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Similar questions

On 4 February 2010 a company issued a bond with a face value of $500,000 that matures exactly 25 years later. The coupon rate is 4% p.a. compounded half-yearly. What is the bond's value on 4 February 2018 assuming the market yield is 8% p.a. compounded half-yearly. $315,888.02 $184,111.98 $317,567.24 $744,985.92 $378,343.31?
BANK ABC purchased a corporate bond with a coupon rate of 5.5% and a face value of $1000. It has 11 years to maturity and is currently selling in the market for $821.53. The bond makes annual coupon payments. BANK ABC is planning on selling this bond at the end of 5 years for $934.86 (ex-interest). What is the holding period yield (HPY) on this bond? 4.7% 5.5% 7% 8% 9% Give typing answer with explanation and conclusion
Food Bank, Inc. offers a 7.0 percent coupon bond with semiannual payments and a yield to maturity of 7.75 percent. The bonds mature in 15 years. What is the market price of a $1,000 face value bond? $937.26 $934.81 $936.60 $934.16
3) The outstanding bonds of International Plastics mature in 6 years and pay semiannual interest payments of $33.50 on a $1,000 face value bond. The bonds are currently selling for $1,008.64. The coupon rate is percent, the current yield is s. Show all work and explain. percent, and the yield to maturity is percer
The Jupiter Dan Company has a bond outstanding that makes semiannual payments with a coupon rate of 9 percent. The bond sells for $982.4 and matures in 20 years. The par value is $1,000. What is the yield to maturity (YTM) of the bond? 4.60% 9.27% 9.19%. 18.33% 18.38%
A company offers a bond with a coupon of 3.4% with semiannually payments and a yield to maturity of 5.3% .The bonds mature in 19 years .What is the market price of a $1,000 face value of bond.
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%
Whatever, Incorporated, has a bond outstanding with a coupon rate of 5.64 percent and semiannual payments. The yield to maturity is 6.1 percent and the bond matures in 15 years. What is the market price if the bond has a par value of $1,000? O$955.61 O $974.31 O $955.21 O $956.68 O$957.94
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%

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