1. ) If bond price is P95,200 against its face value of P100,000, is it worth buying this bond? Assuming that the coupon rate is 4.2% and the prevailing interest rate of alternative investment is 4.9% (risk-free rate). The bond is expected to mature one year from now with a default rate of 3%. What is the current yield?

2.) Based on question above, what is the yield to maturity? what is the yield to maturity adjusted with default risk?

Answer rating: 100% (QA)

current yield 441 1 Current Yield CoupounMarket Price 100 100000... View the full answer