Odd Co. issued a 12-year bond with 0.08 yield to maturity and a 7% coupon rate. The par value of the bond Odd co. issue is P1,000. What discount rate will be used to get the price of the bond? 7% coupon rate 8% current yield 8% yield to maturity 7% nominal rate What is the price of the bond of Odd Co. today? 64 64 64 1,000 On the 10th year, the bond has a price of 16 54 16 1,000 On the 12th year, the bond has a price of 1,000 16 54 16

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
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Odd Co. issued a 12-year bond with 0.08 yield to maturity and a 7% coupon rate. The par value of the bond Odd co. issue is P1,000.

  1. What discount rate will be used to get the price of the bond?
    1. 7% coupon rate
    2. 8% current yield
    3. 8% yield to maturity
    4. 7% nominal rate
  1. What is the price of the bond of Odd Co. today?
    1. 64
    2. 64
    3. 64
    4. 1,000
  2. On the 10th year, the bond has a price of
    1. 16
    2. 54
    3. 16
    4. 1,000
  3. On the 12th year, the bond has a price of
    1. 1,000
    2. 16
    3. 54
    4. 16
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