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SBM., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. The bond can be redeemed at year 3 at 101. Currently, the bond is quoted 95 2. The approximate yield to call would be closest to: a. 9.50% b. 3.67% c. 9.28% d. 10.27% e. 18.75% f. 11.03%

SBM., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. The bond can be redeemed at year 3 at 101. Currently, the bond is quoted 95 2. The approximate yield to call would be closest to: a. 9.50% b. 3.67% c. 9.28% d. 10.27% e. 18.75% f. 11.03%

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 11PROB
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SBM., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. The bond can be redeemed at year 3 at 101. Currently, the bond is quoted 95 2. The approximate yield to call would be closest to: a. 9.50% b. 3.67% c. 9.28% d. 10.27% e. 18.75% f. 11.03% SAM Co., issued a 10 year bond with a face value of P50,000 with a coupon rate of 10% that will be paid semiannually. The bond is callable at year 5 at 98. Currently the bond is quoted at 85. The approximate yield to call would be closest to: a. 8.31% b. 6.89% c. 13.77% d. 17.03% e. 1.71% f. 7.69%
Transcribed Image Text:SBM., issued a 5-year bond with a face value of P10,000 with a coupon rate of 9%. The bond can be redeemed at year 3 at 101. Currently, the bond is quoted 95 2. The approximate yield to call would be closest to: a. 9.50% b. 3.67% c. 9.28% d. 10.27% e. 18.75% f. 11.03% SAM Co., issued a 10 year bond with a face value of P50,000 with a coupon rate of 10% that will be paid semiannually. The bond is callable at year 5 at 98. Currently the bond is quoted at 85. The approximate yield to call would be closest to: a. 8.31% b. 6.89% c. 13.77% d. 17.03% e. 1.71% f. 7.69%
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