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1: 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
1: 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 nearest to A. P891.00 B. P913.27 C. P936.10 D. P959.51 E. P983.4 QUESTION 3: 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? A. P1,077.01 B. P1,104.62 C. P1,132.95 D. P1,162.00 E. P1,191.79 QUESTION 4: 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 nearest to A. 6.20% B. 6.53% C. 6.87% D. 7.24% E. 7.63% QUESTION 5: 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 nearest to A. 6.39% B. 6.72% C. 7.08% D. 7.45% E. 7.82%
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