The National Company’s bonds have 4 years remaining to maturity. Interest is paid annually; the bonds have a P1,000, face value; and the coupon interest rate is 9%. What is the estimated yield to maturity of the bonds at their current market price of P829?
The National Company’s bonds have 4 years remaining to maturity. Interest is paid annually; the bonds have a P1,000, face value; and the coupon interest rate is 9%. What is the estimated yield to maturity of the bonds at their current market price of P829?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 1P
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The National Company’s bonds have 4 years remaining to maturity. Interest is paid annually; the bonds have a P1,000, face value; and the coupon interest rate is 9%. What is the estimated yield to maturity of the bonds at their current market price of P829?
14.80%
8.20%
10.86%
13.10%
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