On issue date, Eric bought a bond offered with the following details. For simplicity, assume that coupons are tax-free. Issuer Par Value Tenor Coupon Rate Issue Date Maturity Date Coupon Payment every 3 months O 5.15% O 5.25% 16888 Corporation O 5.2% P10,000 O 5.3% 5 years 5.2% p.a. If Eric sells the bond on December 10, 2020 at P10,100, what would be the current yield of the buyer? December 10, 2018 December 10, 2023

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...
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On issue date, Eric bought a bond offered with the following details. For simplicity, assume that coupons are tax-free.
Issuer
Par Value
Tenor
Coupon Rate
Issue Date
Maturity Date
Coupon Payment every 3 months
O 5.15%
O 5.25%
16888 Corporation
O 5.2%
P10,000
O 5.3%
5 years
5.2% p.a.
If Eric sells the bond on December 10, 2020 at P10,100, what would be the current yield of the buyer?
December 10, 2018
December 10, 2023
Transcribed Image Text:On issue date, Eric bought a bond offered with the following details. For simplicity, assume that coupons are tax-free. Issuer Par Value Tenor Coupon Rate Issue Date Maturity Date Coupon Payment every 3 months O 5.15% O 5.25% 16888 Corporation O 5.2% P10,000 O 5.3% 5 years 5.2% p.a. If Eric sells the bond on December 10, 2020 at P10,100, what would be the current yield of the buyer? December 10, 2018 December 10, 2023
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