OUR LADY OF THE PILLAR ACADEMY OF SIBONGA, INC.
6020 Poblacion, Sibonga, Cebu
Telefax No.(032) 486- 9698 Email Add.
[email protected] Member •Catholic Educational Association of the Philippines (CEAP)
Midterm Examination in General Mathematics
S.Y: 2023-2024
Name: __________________________Grade& Section: ________Date: ________Score: ______
Test I. Identify what is asked in each item. Choose your answer in the box and write the words/phrase
on the blank provided in each item. (1pt each)
Stock bond Government Bonds
Dividend Zero-coupon Bonds Stock Appreciation
Coupon rate Stock dividend Par Value
Cash dividend Price of a bond stock market
1. These bonds make no coupon payments but instead are issued at a considerable discount to par
value. _______________________
2. These are bonds issued by governments to fund programs, meet payrolls, and pay their bills.
________________________
3. It represents ownership of the company. _____________________
4. It is a dividend made in the form of additional shares rather than a cash payout. _____________
5. It is a debt financing instrument. This is an interest bearing security which promises to pay an
amount of money on certain maturity value as stated in the bond certificate. _______________
6. It is a share in the company’s profit. _______________________
8. It is the rate per coupon payment period, denoted by 𝑟. ___________________
7. It is the increase in value of a certain stock from the value when you first purchased the stock.
9. It is the amount payable on the maturity date, denoted by 𝐹. ________________________
10. It is a marketplace wherein publicly listed companies are issuing and trading shares of stock
through exchange or brokers. _______________________________
Test II. Compute the unknown in each item. Use the space provided for your solution and answer. Box
your final answer. (2pts each)
1. A group of four friends decided to establish a business. They decided to contribute ₱190 000
each in order to put up the business.
a. How much ownership does each individual have?
b. What would be the cost of shares if they decided to split up the business to 10 000 shares?
2. The total value of ABC Company is ₱20 000 000. What would be the cost of shares if they
decided to split up the business to 10 000 shares?
3. A group of five friends decided to establish a business. Patricia contributed ₱20 000, Cecille
contributed ₱30 000, Jeffrey contributed ₱25 000, Russel contributed twice as Cecille’s, and
Bryan contributed half as Patricia’s and Cecille’s combined.
a. What is the total value of the business?
b. How much ownership does each individual have?
Test III. Read and analyze the problem below. Identify the given provided in each item to solve the
problem. Formulate a conclusion as your final answer. Use the space provided for your answer and
solution.
1. A ₱350 000 bond is redeemable at ₱650 000 after 8 years. Coupons are given at 5% convertible
semi-annually. Find the amount of the semi-annual coupon.
a. Given: (1pt) Solution: (3pts)
b. Conclusion: (1pt)
2. Calculate the price of a bond with a face value of ₱850 000 to be paid in three years with semi-
annual coupon at the rate of 6% and a required yield of 12%. Determine if the bond is selling at
par, at a discount, or at a premium.
a. Given: (1pt ) Solution: (3pts)
b. Conclusion: (1pt)
Prepared by: Irene S. Campana
