WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 8% annually and a yield to maturity of 12%. The bond’s convexity would be closest to: a. 14.91 b. 19.67 c. 20.84 d. 17.62 e. 19.20

WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 8% annually and a yield to maturity of 12%. The bond’s convexity would be closest to: a. 14.91 b. 19.67 c. 20.84 d. 17.62 e. 19.20

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2EB: Waylan Sisters Inc. issued 3-year bonds with a par value of $100,000 and a 6% annual coupon when the...

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Question

WAY Co., issued a 5-year bond with a face value of ₱50,000 with a coupon rate of 8% annually and a yield to maturity of 12%. The bond’s convexity would be closest to:

a. 14.91

b. 19.67

c. 20.84

d. 17.62

e. 19.20

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