DEF Inc.'s bonds currently sell for ₱776,250. They have a 6-year maturity, annual interest of ₱57,375, and a face value of ₱675,000. The current yield of the bonds is nearest to A. 7.39% B. 7.76% C. 8.15% D. 8.56% E. 8.98% QUESTION 2: XYZ Co.'s 15-year P1,000 par value bonds have annual coupon rate of 9.5% but pays interest semiannually. If Mr. Wa Is requires 11% nominal yield to maturity on this investment, the maximum price he should pay for the bond is?

On January 1, 2020, ABC Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of P1,000. On January 1, 2021, the market interest rate on these bonds is 5.5%. What price of the bonds on January 1, 2021?

ABC Co.'s bonds currently sell for ₱116,500. They mature in 15 years and pay an annual interest of ₱9,500. They have a face value of ₱100,000. The bond's effective interest rate is?

ABC Co. bonds have a par value of P1,000 but currently sell for P1,280. The bonds pay P135 annual coupon, matures after 15-years, but can be called in 5 years at P1,050. The yield to call (YTC) of the bonds is?

Answer rating: 100% (QA)

Lets solve each question one by one Question 1 To calculate the current yield we divide the annual interest by the current market price of the bond an... View the full answer