Question
Santos energy has 9.5% annual coupon bonds outstanding with 15 years left until maturity. The bonds have a face value (FV) of $1,000 and their
Santos energy has 9.5% annual coupon bonds outstanding with 15 years left until maturity. The bonds have a face value (FV) of $1,000 and their current market price (PV) is $1,111.76. what is the YTM on Santoss bonds?
A). 10.82%
B). 7.43%
C). 10.45%
D). 8.18%
E). 9.74%
What is the current yield on Santos's outstanding bonds?
A). 10.22%
B). 10.51%
C). 8.35%
D). 9.94%
E). 8.55%
What is the expected capital gains yield on Santos's outstanding bonds?
A). -0.37%
B). 8.55%
C). 0.31%
D). 7.43%
E). 0.23%
Santos's bonds have a call provision that allows santos to call the bonds in 5 years at a call price of $1,040. What is the yield to call (YTC) on the bonds?
A). 11.35%
B). 12.84%
C). 10.64%
D). 9.95%
E). 7.43%
What rate of return can investors expect to earn on Santos's bonds if they purchase them today?
A). 12.84%
B). 8.18%
C). 7.9%
D). 7.43%
E). 6.85%
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