The following bonds are offered for your investment portfolio. Compute for the YTM and Value of the bond. Write you final answers to the table provided below. Bond Bond Value Coupon Rate Interest Due Maturity Period Required Rate of Return Offered Price K P10,000 15% Annually 12 yrs. 13% 98-1/2 A 25,000 8% Annually 15 yrs. 9% 102-3/4 P 20,000 10% Semi-Annual 8 yrs. 12% 105 O 15,000 13% Semi-Annual 6 yrs. 16% 96-1/4 I 10,000 13% Quarterly 5 yrs. 12% 103-1/2 Based on the above Bonds for investment, compute for the following: Bond Yield to Maturity Value of Each Bond Decision: Accept or Reject K A P O I Note: For bond K and P used the exact YTM, while for A, O and I compute the Approximate YTM.
The following bonds are offered for your investment portfolio. Compute for the YTM and Value of the bond. Write you final answers to the table provided below. Bond Bond Value Coupon Rate Interest Due Maturity Period Required Rate of Return Offered Price K P10,000 15% Annually 12 yrs. 13% 98-1/2 A 25,000 8% Annually 15 yrs. 9% 102-3/4 P 20,000 10% Semi-Annual 8 yrs. 12% 105 O 15,000 13% Semi-Annual 6 yrs. 16% 96-1/4 I 10,000 13% Quarterly 5 yrs. 12% 103-1/2 Based on the above Bonds for investment, compute for the following: Bond Yield to Maturity Value of Each Bond Decision: Accept or Reject K A P O I Note: For bond K and P used the exact YTM, while for A, O and I compute the Approximate YTM.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 8FPE: Describe and differentiate between a bonds (a) current yield and (b) yield to maturity. Why are...
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The following bonds are offered for your investment portfolio. Compute for the YTM and Value of the bond. Write you final answers to the table provided below.
| Bond | Bond Value | Coupon Rate | Interest Due | Maturity Period | Required |
Offered Price |
| K | P10,000 | 15% | Annually | 12 yrs. | 13% | 98-1/2 |
| A | 25,000 | 8% | Annually | 15 yrs. | 9% | 102-3/4 |
| P | 20,000 | 10% | Semi-Annual | 8 yrs. | 12% | 105 |
| O | 15,000 | 13% | Semi-Annual | 6 yrs. | 16% | 96-1/4 |
| I | 10,000 | 13% | Quarterly | 5 yrs. | 12% | 103-1/2 |
Based on the above Bonds for investment, compute for the following:
| Bond | Yield to Maturity | Value of Each Bond | Decision: Accept or Reject |
| K | |||
| A | |||
| P | |||
| O | |||
| I |
Note: For bond K and P used the exact YTM, while for A, O and I compute the Approximate YTM.
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