SBM Co., issued a 5-year bond with a face value of ₱10,000 with a coupon rate of 9%. Currently, the bond is quoted 95 1⁄2. 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%
SBM Co., issued a 5-year bond with a face value of ₱10,000 with a coupon rate of 9%. Currently, the bond is quoted 95 1⁄2. 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%
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 11PROB
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SBM Co., issued a 5-year bond with a face value of ₱10,000 with a coupon rate of 9%. Currently, the bond is quoted 95 1⁄2. 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%
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