The following bonds are offered for your investment portfolio. Compute for the YTM and Value of the bond. Write you final answers to the table provided below. Bond Bond Value Coupon Rate Interest Due Maturity Period Required Rate of Return Offered Price K P10,000 15% Annually 12 yrs. 13% 98-1/2 A 25,000 8% Annually 15 yrs. 9% 102-3/4 P 20,000 10% Semi-Annual 8 yrs. 12% 105 O 15,000 13% Semi-Annual 6 yrs. 16% 96-1/4 I 10,000 13% Quarterly 5 yrs. 12% 103-1/2 Based on the above Bonds for investment, compute for the following: Bond Yield to Maturity Value of Each Bond Decision: Accept or Reject K A P O I Note: For bond K and P used the exact YTM, while for A, O and I compute the Approximate YTM.
The following bonds are offered for your investment portfolio. Compute for the YTM and Value of the bond. Write you final answers to the table provided below. Bond Bond Value Coupon Rate Interest Due Maturity Period Required Rate of Return Offered Price K P10,000 15% Annually 12 yrs. 13% 98-1/2 A 25,000 8% Annually 15 yrs. 9% 102-3/4 P 20,000 10% Semi-Annual 8 yrs. 12% 105 O 15,000 13% Semi-Annual 6 yrs. 16% 96-1/4 I 10,000 13% Quarterly 5 yrs. 12% 103-1/2 Based on the above Bonds for investment, compute for the following: Bond Yield to Maturity Value of Each Bond Decision: Accept or Reject K A P O I Note: For bond K and P used the exact YTM, while for A, O and I compute the Approximate YTM.
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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The following bonds are offered for your investment portfolio. Compute for the YTM and Value of the bond. Write you final answers to the table provided below.
| Bond | Bond Value | Coupon Rate | Interest Due | Maturity Period | Required |
Offered Price |
| K | P10,000 | 15% | Annually | 12 yrs. | 13% | 98-1/2 |
| A | 25,000 | 8% | Annually | 15 yrs. | 9% | 102-3/4 |
| P | 20,000 | 10% | Semi-Annual | 8 yrs. | 12% | 105 |
| O | 15,000 | 13% | Semi-Annual | 6 yrs. | 16% | 96-1/4 |
| I | 10,000 | 13% | Quarterly | 5 yrs. | 12% | 103-1/2 |
Based on the above Bonds for investment, compute for the following:
| Bond | Yield to Maturity | Value of Each Bond | Decision: Accept or Reject |
| K | |||
| A | |||
| P | |||
| O | |||
| I |
Note: For bond K and P used the exact YTM, while for A, O and I compute the Approximate YTM.
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