Odd Co. issued a 12-year bond with 0.08 yield to maturity and a 7% coupon rate. The par value of the bond Odd co. issue is P1,000. What discount rate will be used to get the price of the bond? 7% coupon rate 8% current yield 8% yield to maturity 7% nominal rate What is the price of the bond of Odd Co. today? 64 64 64 1,000 On the 10th year, the bond has a price of 16 54 16 1,000 On the 12th year, the bond has a price of 1,000 16 54 16
Odd Co. issued a 12-year bond with 0.08 yield to maturity and a 7% coupon rate. The par value of the bond Odd co. issue is P1,000. What discount rate will be used to get the price of the bond? 7% coupon rate 8% current yield 8% yield to maturity 7% nominal rate What is the price of the bond of Odd Co. today? 64 64 64 1,000 On the 10th year, the bond has a price of 16 54 16 1,000 On the 12th year, the bond has a price of 1,000 16 54 16
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 14PROB
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Question
Odd Co. issued a 12-year bond with 0.08 yield to maturity and a 7% coupon rate. The par
- What discount rate will be used to get the price of the bond?
- 7% coupon rate
- 8% current yield
- 8% yield to maturity
- 7% nominal rate
- What is the price of the bond of Odd Co. today?
- 64
- 64
- 64
- 1,000
- On the 10th year, the bond has a price of
- 16
- 54
- 16
- 1,000
- On the 12th year, the bond has a price of
- 1,000
- 16
- 54
- 16
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