A company issued bonds on September 2, 2005 with a dividend rate of 7.5% in 20 years. The bond is sold for their face value of P10,000. On September 2, 2015, the bond price rose to P110,400. What is the current yield to maturity if the coupon is dateed annually

A company issued bonds on September 2, 2005 with a dividend rate of 7.5% in 20 years. The bond is sold for their face value of P10,000. On September 2, 2015, the bond price rose to P110,400. What is the current yield to maturity if the coupon is dateed annually

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...

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Definition Definition Calculates the present value of a bond's expected future periodic coupon payments. Bond valuation determines the theoretical fair value of a particular bond and helps investors estimate what rate of return they could expect. The bond's theoretical fair value is computed by discounting the future cash flows or coupon payments by an applicable discount rate.

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