FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
6th Edition
ISBN: 9781260529326
Author: Kapoor
Publisher: McGraw-Hill Publishing Co.
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Chapter 11, Problem 11P
Summary Introduction
To determine: Current yield.
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The bond certificate with a par value P1,000,000 and a bond rate of 10 % was sold for P1,064, 176.58 . Calculate the yield that the investor obtained from his investment .
Which of the following relationships is most accurate regarding a 20-year corporate bond that sells for $958 if it has a 3.75% coupon, paid semi-annually? Select one O A. The YTM < current yield. B. The current yield > YTM. C. The coupon rate < current yield. D. The risk-free rate> YTM.
The nominal rate of return is ______% earned by an investor in a bond that was purchased for $963, has an annual coupon of 8%, and was sold at the end of the year for $1041? Assume the face value of the bond is $1,000
Chapter 11 Solutions
FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
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