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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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?
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
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%
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 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%
Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,065 and it sells for $1,200. a. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: % YTC: % Would an investor be more likely to earn the YTM or the YTC? -Select- b. What is the current yield? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Round your answer to two decimal places. % Is this yield affected by whether the bond is likely to be called? I. If the bond is called, the capital gains yield will remain the same but the current yield will be different. II. If the bond is called, the current yield and the capital gains yield will both be different. III. If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate will be…
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.
Innovative Financial Inc. issues a bond with the following information: Par: $1,000 Time to maturity: 20 years Yield to maturity: 8 percent Current market price: $1,304.28 Quarterly payments What is the coupon rate? A. 10.12% B. 11.06% C. 14.38% D. 13.25%
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
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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