WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 10% on a semiannual basis and a yield to maturity of 8% per annum compounded semiannually. The Macaulay duration would be closest to 4.20. The modified duration would be closest to: a. 4.00 b. 7.88 c. 7.94 d. 8.20 e. 7.80

WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 10% on a semiannual basis and a yield to maturity of 8% per annum compounded semiannually. The Macaulay duration would be closest to 4.20. The modified duration would be closest to: a. 4.00 b. 7.88 c. 7.94 d. 8.20 e. 7.80

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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Similar questions

The bonds issued by Party Citeh bear a coupon of 8 percent, payable semiannually. The bond matures in 19 years and has a $1,000 face value. Currently, the bond sells at $981. The yield to maturity (YTM) is ________%.
An obligation of £6,000 ostensible is redeemable at 109% on any coupon installment date somewhere in the range of 11 and 23 years from the date of isssue. The bond pays coupons of 8.2% per annum quarterly financially past due.Work out, to 2 decimal places, the with-profit cost one month after issue that ought to be paid by a financial backer at risk to 23% personal expense wishing to accomplish a compelling yearly yield of 2.7%.
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
Atom Endeavour Co. issued $48 million face amount of 12.0% bonds when market interest rates were 13.38% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Annual interest payment b. Were the bonds issued at a premium or discount? O Premium O Discount c. Will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year? O Interest expense will be less than the interest paid. O Interest expense will be more than the interest paid. O Interest expense will be equal to the interest paid.
The LBJ Corporation issues a bond which has a coupon rate of 9.20%, a yield to maturity of 10.55%, a face value of $1,000, and a market price of $850. Therefore, the annual interest payment is: O $101.75. O $102. $96.50 O$92
Blue Co. holds the following bonds which all have a yield to maturity of 15% and matures in 10 years: ABC – 12% annual quoted rate; P5,000 face value XYZ – 15% annual quoted rate; P5,000 face value If XYZ bond is sold after a year with an expected total return of 18%, Determine the approximate price in which XYZ bond is sold.
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%
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 9.8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.2%, then the price that this bond trades for will be closest to: A. $1,387 B. $1,618 O C. $1,156 D. $925
A $1,000 bond originally issued at par maturing in exactly ten years bears a coupon rate of 8% compounded annually and a market price of $1,147.20. The indenture agreement provides that the bond may be called after five years at $1,050. Which of the following statements is/are true? The yield to maturity is 6% The yield to call is 5.45% The bond is currently selling at a premium, indicating that market interest rates have fallen since the issue date The yield to maturity is less than the yield to call 1, 2, 3 1, 3 2, 3 4 only 1, 3, 4
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%
A bond of Akshita Ltd has a yield of 10% if held till maturity. If it has a duration of 4.28 years, the modified duration of this bond would be O a. 3.89% O b. 4.25% O c. 4.89% O d. 3.25%
The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $4,775.32, then the YTM for this bond is closest to OA. 9.1% B. 10.9% OC. 7.2% OD. 12.7%

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