On issue date, Eric bought a bond offered with the following details. For simplicity, assume that coupons are tax-free. Issuer Par Value Tenor Coupon Rate Issue Date Maturity Date Coupon Payment every 3 months O 5.15% O 5.25% 16888 Corporation O 5.2% P10,000 O 5.3% 5 years 5.2% p.a. If Eric sells the bond on December 10, 2020 at P10,100, what would be the current yield of the buyer? December 10, 2018 December 10, 2023

On issue date, Eric bought a bond offered with the following details. For simplicity, assume that coupons are tax-free. Issuer Par Value Tenor Coupon Rate Issue Date Maturity Date Coupon Payment every 3 months O 5.15% O 5.25% 16888 Corporation O 5.2% P10,000 O 5.3% 5 years 5.2% p.a. If Eric sells the bond on December 10, 2020 at P10,100, what would be the current yield of the buyer? December 10, 2018 December 10, 2023

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 9P

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