The corporation has issued a bond which has a P1,000 par value and a 15% annual coupon interest rate. The bond will mature in ten years and currently sells for P1,250. What is the yield to maturity of this bond using the approximation formula? a. 11.11%
The corporation has issued a bond which has a P1,000 par value and a 15% annual coupon interest rate. The bond will mature in ten years and currently sells for P1,250. What is the yield to maturity of this bond using the approximation formula? a. 11.11%
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 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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The corporation has issued a bond which has a P1,000 par value and a 15% annual coupon interest rate. The bond will mature in ten years and currently sells for P1,250. What is the yield to maturity of this bond using the approximation formula?
a. 11.11%
b. 15%
c. 27.278%
d. 43.33%
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