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 4. The total return this year would be closest to: a. 15.97% b. 15.40% c. 3.40% d. 10.47% e. 12.10% f. 8.62%

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
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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 4. The total return this year would be closest to:
a. 15.97%
b. 15.40%
c. 3.40%
d. 10.47%
e. 12.10%
f. 8.62%
Transcribed Image Text: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 4. The total return this year would be closest to: a. 15.97% b. 15.40% c. 3.40% d. 10.47% e. 12.10% f. 8.62%
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