Resta, Inc. has issued a 10% bond that is to mature in 6 years. The bond had a P10,000 par value, and interest is due to be paid every 4 If the required rate of return is 12%, what price would you be willing to pay for the bond? 2. Polo Enterprises has bonds outstanding with a P10,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is 117-1/2. The bonds may be called in 5 years at 109 of face What is the yield to call if they are called in 5 years? 3. A 10-year Corporate bond with a par value of P5,000 and with a coupon rate of 16%p.a. interest payable semi-annual with a remaining life of 8 years is offered to you at 86-3/4. Your required rate of return is 18%a. What is the value of the bond? Answer with solution
1. Resta, Inc. has issued a 10% bond that is to mature in 6 years. The bond had a P10,000 par value, and interest is due to be paid every 4 If the required
2. Polo Enterprises has bonds outstanding with a P10,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is 117-1/2. The bonds may be called in 5 years at 109 of face What is the yield to call if they are called in 5 years?
3. A 10-year Corporate bond with a par value of P5,000 and with a coupon rate of 16%p.a. interest payable semi-annual with a remaining life of 8 years is offered to you at 86-3/4. Your required rate of return is 18%a. What is the
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