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10. A bond has a 25-year maturity, an 8% annual coupon paid semiannually, and a face value of P1,000. The going nominal annual interest rate

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10. A bond has a 25-year maturity, an 8% annual coupon paid semiannually, and a face value of P1,000. The going nominal annual interest rate (rd) is 6%. What is the bond's price? (2 Points) O 1,140.71 O 1,135.12 O 1,021.32 1,000 11. A firm has a levered beta of 1.4; a tax rate of 40%; the cost of debt before tax of 45%. Assume that the risk-free rate is 6% and the market risk premium is 5%. What would be the cost of equity if it had no debt? (2 Points) O 13.14% O 12.60% 12% O 13% 13. An investment has a 20% chance of producing a 25% return, a 60% chance of producing a 10% return, and a 20% chance of producing a -15% return. What is its expected return? (2 Points) 8% 6% 7% 10% 15. A firm has a levered beta of 1.4; tax rate of 40%; the cost of debt before tax of 45%. Assume that the risk-free rate is 6% and the market risk premium is 5%. What would be the cost of debt after tax? (2 Points) 27% 18% 25% 0 20% 20. A firm has fixed operating costs of P100,000 and variable costs of P4 per unit. If it sells the product for P6 per unit, what is the break-even in pesos? (2 Points) P300,000 O P200,000 O P100,000 P150,000 21. A firm has fixed operating costs of P100,000 and variable costs of P4 per unit. If it sells the product for P6 per unit, what is the break-even quantity? (2 Points) 50,000 units 100,000 units O 75,000 units O 25,000 units 23. A bond currently sells for P850. It has an 8- year maturity, an annual coupon of P80, and a par value of P1,000. What is its yield to maturity? (2 Points) 9.41 8% O 10% 9%

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