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 would be closest to: a. 9.50% b. 3.67% c. 9.28% d. 10.27% e. 18.75% f. 11.03%

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 would be closest to: a. 9.50% b. 3.67% c. 9.28% d. 10.27% e. 18.75% f. 11.03%

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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A 7% annual coupon bond has a maturity of three years and a yield to maturity on an annual basis of 8%. For the next two years, interest rates stay at 8% and thereafter they change to 7%. Which of the following is closest to the amount of reinvestment income on the bond to its final maturity if the par value of the holding is $1,000. A. $15.04B. $15.79C. $16.55
A bond with $898,000 face value that pays 10% coupon is issued at 102 1/2, i.e., 102.5% of its face value. Is this bond issues at premium of discount? And what is the amount of cash received as a result of issuing this bond? a. Premium; $920,450 b. Discount; $673,500 c. Premium; $987,800 d. PAR Value; $898,000 A B C D
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 9.5% and that the coupon payments are to be made semannually.Assuming the appropriate YTM on the Sisyphean bond is 7.4%, then this bond will trede at A a premium. B. par c. a discount. D. none of the above
A 20-year, 10% monthly-pay bond has a par value of $1,000. If the price of the bond is $887.14, its yield-to-maturity (YTM) is closest to A. 11.44%. B. 12.29%. C. 14.92%. D. 35.05%.
A $1,000 par value bond with a 7.50% coupon rate (semianual interest) matures in 7 years and currently sells for $992.66. What is the bond's yield to maturity and bond equivalent yield? The bond's yield to maturity is%. (Round to two decimal places.)
The face Value of the 8.5% bond is $1,000 with a maturity period of 5 years. The bond is selling currently at $943:15: The yield-to maturity on the similar bond-is 10%. Calculate Bond Duration and Volatility of the Bond
Ordinary bonds issued by PIMCO have a current quoted price of $830.50. The PIMCO bond has a 5.7% annual coupon rate. The YTM = 8.15% and the PIMCO bonds pays coupon twice per year. If the next coupon will be disbursed in exactly 6 months, the PIMCO bond will mature in: a. 5.19 years b. 29.14 years c. 19.96 years d. 20.77 years e. 10.39 years
A $1,000 par value bond with a 8.25% coupon rate (semianual interest) matures in 7 years and currently sells for $982.02. What is the bond's yield to maturity and bond equivalent yield? The bond's yield to maturity is%. (Round to two decimal places.)
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 9.7% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $1,010, then the YTM for this bond is closest to: A. 11.4% B. 7.6% C. 13.3% D. 9.5%

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