The corporation has issued a bond which has a P1,000 par value and a 15% annual coupon interest rate. The bond will mature in ten years and currently sells for P1,250. What is the yield to maturity of this bond using the approximation formula? a. 11.11%
The corporation has issued a bond which has a P1,000 par value and a 15% annual coupon interest rate. The bond will mature in ten years and currently sells for P1,250. What is the yield to maturity of this bond using the approximation formula? a. 11.11%
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 6FPE
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The corporation has issued a bond which has a P1,000 par value and a 15% annual coupon interest rate. The bond will mature in ten years and currently sells for P1,250. What is the yield to maturity of this bond using the approximation formula?
a. 11.11%
b. 15%
c. 27.278%
d. 43.33%
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