MXT Co., issued a 7-year bond with a face value of ₱30,000 with a coupon rate of 7%. Currently the bond is quoted at 105. The current yield would be: a. 5% b. 6.67% c. 7.80% d. 13.33% e. 16.67% f. 8.75%

MXT Co., issued a 7-year bond with a face value of ₱30,000 with a coupon rate of 7%. Currently the bond is quoted at 105. The current yield would be: a. 5% b. 6.67% c. 7.80% d. 13.33% e. 16.67% f. 8.75%

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

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Question

MXT Co., issued a 7-year bond with a face value of ₱30,000 with a coupon rate of 7%. Currently the bond is quoted at 105. The current yield would be:
a. 5% b. 6.67% c. 7.80%
d. 13.33% e. 16.67% f. 8.75%

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