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Use the following information to answer problem no. 50-52. A company has just issued a new 5-year bonds to public with par value of Rp.
Use the following information to answer problem no. 50-52. A company has just issued a new 5-year bonds to public with par value of Rp. 1,000,000 and coupon rate of 10% paid annually. This is the first bond issued by that company. As investor, you are lucky enough to buy 100 bonds in primary market. 50. How much money do you receive in the next year? a. Rp. 10,000,000 b. Rp. 1,000,000 c. Rp. 500,000 d. Rp. 100,000 51. If you hold the bonds until maturity, what does the return you receive? a. 7.0% b. 8.0% c. 9.0% d. 10.0% 52. In the third year, the bond is traded at 90%. If your friend, Susan, buys that bond, and holds it until maturity. What does the return she receive? a. 10.25% b. 12.25% c. 14.25% d. 16.25%
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