SBM Co., issued a 5-year bond with a face value of P10,000with a coupon rate of 9%. Currently, the bond is quoted 95 2.The approximate yield to maturity would be closest to:a. 4.80%b. 9.5%c. 8.87%d. 9.69%e. 10.13%f. 11.12%SAM Co., issued a 10 year bond with a face value of P50,000with a coupon rate of 10% that will be paid semiannually.Currently the bond is quoted at 85. The approximate yield tomaturity would be closest to:а. 10%b. 15%c. 6.22%d. 21.90%e. 10.81%f. 8.67%

Face value of bond = P 10,000 Coupon rate = 9% Coupon amount = 10000*0.09 = P 900 Years to maturity…

Answered: SBM Co., issued a 5-year bond with a…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 7P: Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate,...

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Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds?
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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% b. 9.5% c. 8.87% d. 9.69% e. 10.13% f. 11.12%