6. SBM Co., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. Currently, the bond is quoted 95 ½. The approximate yield to maturity would be closest to: a. 4.80% d. 9.69% 7. SAM Co., issued a 10 year bond with a face value of P50,000 with a coupon rate of 10% that will be paid semiannually. Currently the bond is quoted at 85. The approximate yield to maturity would be closest to: b. 9.5% e. 10.13% c. 8.87% f. 11.12% a. 10% d. 21.90% b. 15% e. 10.81% c. 6.22% f. 8.67% 8. SBM., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. The bond can be redeemed at year 3 at 101. Currently, the bond is quoted 95 2. The approximate yield to call would be closest to: 9.28% f. 11.03% a. 9.50% b. 3.67% с. d. 10.27% e. 18.75%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 4PROB
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6. SBM Co., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. Currently, the
bond is quoted 95 ½. The approximate yield to maturity would be closest to:
a. 4.80%
d. 9.69%
7. SAM Co., issued a 10 year bond with a face value of P50,000 with a coupon rate of 10% that will be
paid semiannually. Currently the bond is quoted at 85. The approximate yield to maturity would be
closest to:
b. 9.5%
c. 8.87%
f. 11.12%
e. 10.13%
b. 15%
e. 10.81%
c. 6.22%
f. 8.67%
а.
10%
d. 21.90%
8. SBM., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. The bond can be
redeemed at year 3 at 101. Currently, the bond is quoted 95 ½. The approximate yield to call would
be closest to:
9.50%
d. 10.27%
a.
b. 3.67%
с.
9.28%
e. 18.75%
f.
11.03%
Transcribed Image Text:6. SBM Co., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. Currently, the bond is quoted 95 ½. The approximate yield to maturity would be closest to: a. 4.80% d. 9.69% 7. SAM Co., issued a 10 year bond with a face value of P50,000 with a coupon rate of 10% that will be paid semiannually. Currently the bond is quoted at 85. The approximate yield to maturity would be closest to: b. 9.5% c. 8.87% f. 11.12% e. 10.13% b. 15% e. 10.81% c. 6.22% f. 8.67% а. 10% d. 21.90% 8. SBM., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. The bond can be redeemed at year 3 at 101. Currently, the bond is quoted 95 ½. The approximate yield to call would be closest to: 9.50% d. 10.27% a. b. 3.67% с. 9.28% e. 18.75% f. 11.03%
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