A bond with face value P10,000 has a semiannual coupon rate of 6%. With a time to maturity of 3 years, the bond is sold for P10,500. What is the current yield of the buyer? Choices: a. 5.71% b. 5.55% c. 6% d. 5%
A bond with face value P10,000 has a semiannual coupon rate of 6%. With a time to maturity of 3 years, the bond is sold for P10,500. What is the current yield of the buyer? Choices: a. 5.71% b. 5.55% c. 6% d. 5%
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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A bond with face value P10,000 has a semiannual coupon rate of 6%. With a time to maturity of 3 years, the bond is sold for P10,500. What is the current yield of the buyer?
Choices:
a. 5.71%
b. 5.55%
c. 6%
d. 5%
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