What is the current price of a P1,000 par value bond maturing in 12 years with a coupon rate of 14%, paid semiannually, that has a yield-to-maturity of 13%? a. P604.00 b. P1,090.00 c. P1,060.00 d. P1,073.00
What is the current price of a P1,000 par value bond maturing in 12 years with a coupon rate of 14%, paid semiannually, that has a yield-to-maturity of 13%? a. P604.00 b. P1,090.00 c. P1,060.00 d. P1,073.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the current price of a P1,000 par
a. P604.00
b. P1,090.00
c. P1,060.00
d. P1,073.00
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Follow-up Question
The bond has the current price of $1,123 and par value of $1,000. The bond matures in 7 years and yields 12%. If the interest is paid semi-annually what will be the bond's annual coupon rate?
Answer choices:
a. 12.23%
b. 14.65%
c. 13.45%
d.17.65%
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