SBM Co., issued a 5-year bond with a face value of P10,000with a coupon rate of 9%. Currently, the bond is quoted 95 2.The approximate yield to maturity would be closest to:a. 4.80%b. 9.5%c. 8.87%d. 9.69%e. 10.13%f. 11.12%SAM Co., issued a 10 year bond with a face value of P50,000with a coupon rate of 10% that will be paid semiannually.Currently the bond is quoted at 85. The approximate yield tomaturity would be closest to:а. 10%b. 15%c. 6.22%d. 21.90%e. 10.81%f. 8.67%

Face value of bond = P 10,000 Coupon rate = 9% Coupon amount = 10000*0.09 = P 900 Years to maturity…

Answered: SBM Co., issued a 5-year bond with a…

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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SAM Co., issued a 10 year bond with a face value of ₱50,000 with a coupon rate of 10% that will be paid semiannually. The bond is callable at year 5 at 98. Currently the bond is quoted at 85. Theapproximate yield to call would be closest to:a. 8.31% b. 6.89% c. 13.77%d. 17.03% e. 1.71% f. 7.69%
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The Jupiter Dan Company has a bond outstanding that makes semiannual payments with a coupon rate of 9 percent. The bond sells for $982.4 and matures in 20 years. The par value is $1,000. What is the yield to maturity (YTM) of the bond? 4.60% 9.27% 9.19%. 18.33% 18.38%
For all questions, assume par value is R 1,000 and semiannual bond interest payments. b) ABSA has one outstanding bond issue with a coupon of 8% which will mature in 5 years. The bond now sells for R 1,141.69. What is the yield to maturity on this bond
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SBM., issued a 5-year bond with a face value of ₱10,000 with a coupon rate of 9%. The bond can be redeemed at year 3 at 101. Currently, the bond is quoted 95 1⁄2. The approximate yield to call wouldbe closest to: a. 9.50% b. 3.67% c. 9.28%d. 10.27% e. 18.75% f. 11.03%
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Calculate the prices of the following bonds. Assume the face value in each case is $1 000. a)A 10.50% p.a. coupon rate, 15 years to maturity with a yield of 8% p.a. b)A 7% p.a. coupon rate, 10 years to maturity and a yield of 8% p.a. c)A 12% p.a. coupon rate, 20 years to maturity and a yield of 10% p.a.
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SBM Co., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. Currently, the bond is quoted 95 ½. The approximate yield to maturity would be closest to: a. 4.80% b. 9.5% c. 8.87% d. 9.69% e. 10.13% f. 11.12%