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1: Beauty Corporations' 25-year P1,000 par value outstanding bonds pay interest semiannually and has 9.25% nominal yield to maturity. If the bonds sell at a
1: Beauty Corporations' 25-year P1,000 par value outstanding bonds pay interest semiannually and has 9.25% nominal yield to maturity. If the bonds sell at a price of P850, what is the bond's annual coupon interest rate? (express answer as % with 2 decimal places. Ex. 11.25%) QUESTION 2: Mr. Wais is deciding whether to invest in the ordinary shares of Chris Pin Co. which is expected to pay a P2.4 dividends at the end of the year. The dividend is expected to grow at 10% a year until the end of third year. After this time, the dividend is expected to grow at 5% a year. The shares are selling in the market at P40 per share. If Mr. Wa Is requires a 12% return on investment, should he buy the ordinary shares of Chris Pin Co
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