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9. 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. The bond is callable at year 5 at 98. Currently the bond is quoted at 85. The approximate yield to call would be closest to: a. 8.31% d. 17.03% 10. MAX Co., issued a 20-year bond with a face value of P100,000 with a coupon rate of 12%. Last year, the bond is quoted 95 ½ and it is expected that the bond will be quoted a 98 %. The total return this year would be closest to: 15.97% b. 6.89% с. 13.77% e. 1.71% f. 7.69% c. 3.40% f. 8.62% а. b. 15.40% d. 10.47% e. 12.10%

9. 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. The bond is callable at year 5 at 98. Currently the bond is quoted at 85. The approximate yield to call would be closest to: a. 8.31% d. 17.03% 10. MAX Co., issued a 20-year bond with a face value of P100,000 with a coupon rate of 12%. Last year, the bond is quoted 95 ½ and it is expected that the bond will be quoted a 98 %. The total return this year would be closest to: 15.97% b. 6.89% с. 13.77% e. 1.71% f. 7.69% c. 3.40% f. 8.62% а. b. 15.40% d. 10.47% e. 12.10%

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...
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9. 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. The bond is callable at year 5 at 98. Currently the bond is quoted at 85. The approximate yield to call would be closest to: a. 8.31% d. 17.03% 10. MAX Co., issued a 20-year bond with a face value of P100,000 with a coupon rate of 12%. Last year, the bond is quoted 95 ½ and it is expected that the bond will be quoted a 98 4. The total return this year would be closest to: 15.97% d. 10.47% c. 13.77% f. 7.69% b. 6.89% е. 1.71% a. b. 15.40% с. 3.40% е. 12.10% f. 8.62%
Transcribed Image Text:9. 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. The bond is callable at year 5 at 98. Currently the bond is quoted at 85. The approximate yield to call would be closest to: a. 8.31% d. 17.03% 10. MAX Co., issued a 20-year bond with a face value of P100,000 with a coupon rate of 12%. Last year, the bond is quoted 95 ½ and it is expected that the bond will be quoted a 98 4. The total return this year would be closest to: 15.97% d. 10.47% c. 13.77% f. 7.69% b. 6.89% е. 1.71% a. b. 15.40% с. 3.40% е. 12.10% f. 8.62%
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