SENIOR HIGH SCHOOL

General Mathematics
Quarter 2 – Module 4
(Week 5)
Stocks and Bonds

i
About the Module
This module was designed and written with you, students, in mind. It is here to help
you master the nature of functions. The scope of this module permits it to be used
in many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged based on the Most Essential
Learning Competencies (MELCs) released by the Department of Education (DepEd)
for this school year 2020 – 2021.

This module is divided into three parts, namely:

Lesson 11 – Stocks
Lesson 12 – Bonds
Lesson 13 – Market Indices for Stocks and Bonds

After going through this module, you are expected to:

o illustrate stocks and bonds;

o distinguish between stocks and bonds;
o describe the different markets for stocks and bonds; and
o analyze the different market indices for stocks and bonds.

ii
 What I Know (Pre-test)

Directions: Choose the letter of the correct answer. Write them on a separate sheet
of paper.

1. This term refers to the share in the ownership of a company.

A. Bonds B. Franchise C. Retail D. Stocks

2. This term refers to interest-bearing security which promises to pay a stated

amount of money on the maturity date and regular interest payments called coupons.
A. Bonds B. Franchise C. Retail D. Stocks

3. It refers to the place where stocks can be bought or sold.

A. Business Center C. Stock Market
B. Stock Enterprises D. Trade Center

4. It is the periodic interest payment that the bondholder receives during the time
between the purchase date and maturity date.
A. Coupon C. Fair Price of Bond
B. Face Value D. Installment

5. In stocks, it refers to the annual dividend per share and the market value per
share.
A. Dividend C. Par Value
B. Dividend Per Share D. Stock Yield Ratio

6. Which of the following is the stock exchange index of the Philippines?

A. IBOVESPA B. KOSPI C. PSEi D. S&P 500

7. Which of the following DOES NOT belong to the group?

A. Construction C. Holding Firms
B. Financials D. Mining and Oil

8. The following terms are commonly included in stock tables, EXCEPT _______.
A. CLOSE B. DIV C. HI D. SHARE

9. Which of the following is NOT a characteristic of stocks?

A. Investors can earn if the security prices increase but they can lose money if the
security prices decrease.
B. A form of equity financing or raising money by allowing investors to be part
owners of the company.
C. Investors are guaranteed interest payments and a return of their money at the
maturity date.
D. It has high risk with a possibility of high returns

10. This refers to the price that the buyers are willing to pay for a stock.
A. Ask Price B. Bid Price C. Price Tag D. Selling Price

1
11. A certain financial institution declared a P40,000,000 dividend for the common
stocks. If there are a total of 750,000 shares of common stock, how much is the
dividend per share?
A. ₱48.22 B. ₱53.33 C. ₱55.12 D. ₱58.19

12. A certain corporation announced that a 4% dividend on a stock with a par value
of P600. Michael owns 150 shares of stock with a par value of P600. How much is
the dividend he received?
A. ₱3,000 B. ₱3,200 C. ₱3,400 D. ₱3,600

13. What is the stock yield ratio if ABC Corporation, with a current market value of
P65, gave a dividend of P10 per share for its common stock?

A. 10.34% B. 12.63% C. 15.38% D. 16.22%

14. Determine the amount of the semi-annual coupon for a bond with a face value
of P400,000 that pays 10%, payable semi-annually for its coupons.

A. ₱10,000 B. ₱20,000 C. ₱30,000 D. ₱40,000

15. Suppose a bond has a face value of P200,000 and its tenor is 10 years from now.
The coupon rate is 5% payable semi-annually. Find the fair price of this bond if the
annual market rate is 4%.
A. ₱127,204.92 C. ₱270,124.29

B. ₱217,024.92 D. ₱271,924.02

2
 Lesson Stocks
11

What I Need to Know

At the end of this lesson, you are expected to:
o define and explain terms related to stocks;
o illustrate stocks and terms related to stocks; and
o solve problems involving stocks.

What’s In

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Image 1. Philippine Stock Exchange (signedmarco.com, 2017)

The picture above gives some of the major companies that the Philippines has as of
today. They are big companies that dominate in the different fields of industries. One
might want to be part of these companies. But do you know that it is possible for you
to be part owners of them?

This lesson will tell you some basic principles of stocks that may be helpful to
unleash that little entrepreneur out of you.

3
 What’s New

What are Stocks? What should I know?

☑Stocks – are forms of equity financing or raising money by allowing investors to

be part owners of the company.
☑Some corporations may raise money for their expansion by issuing stocks.
Stocks are shares in the ownership of the company. Owners of stocks may be
considered as part owners of the company.
☑Stocks can be bought or sold at their current prices called the market value.
When a person buys some shares, he/she receives a certificate with the
corporation’s name, owner’s name, number of shares and par value per share.
☑Common stocks and Preferred stocks – Two types of stocks. Both of them will
receive dividends or share of earnings of the company. Dividends are paid first to
preferred stocks shareholders.
☑Stock prices vary every day. These prices are reported in various media (TV,
newspaper, internet, etc.)
☑Investing in stock involves some uncertainties. Investors can earn if the stock
prices increase, but they can lose money if the stock prices decrease or worse, if the
company goes bankrupt.
☑Higher risk but with possibility of higher returns
☑Can be appropriate if the investment is for the long term (10 years or more).
This can allow investors to wait for stock prices to increase if ever they go low.

Related Terms
☑Dividend – Share in the company’s profit
☑Dividend Per Share – ration of the dividends to the number of shares
☑Stock Market – a place where stocks can be bought or sold. The stock market
in the Philippines is governed by the Philippine Stock Exchange (PSE)
☑Market Value – the current price of a stock at which it can be sold.
☑Stock Yield Ratio – ratio of the annual dividend per share and the market value
per share. This is also called current stock yield.
☑Par Value – the per share amount as stated on the company’s certificate.
Source: General Mathematics Teaching Guide, 2016

4
 Let’s illustrate these terms in stocks!

 Dividend and Dividend Per Share

Example. A certain financial institution declared a P40,000,000 dividend for the
common stocks. If there are a total of 750,000 shares of common stock, how much
is the dividend per share?
Given: Total Dividend = P40,000,000
Total Shares = 750,000
Find: Dividend Per Share
Total Dividend
Dividend Per Share =
Total Shares
40,000,000
Dividend Per Share =
750,000
Dividend Per Share = 53.33
Therefore, the dividend per share is P53.33.

 Dividend and Par Value

Example. A certain corporation announced that a 4% dividend on a stock with a par
value of P600. Michael owns 150 shares of stock with a par value of P600. How much
is the dividend he received?
Given: Dividend (Percentage) = 4% or 0.04
Par Value = P600
Number of Shares = 150
Find: Dividend
Dividend = Dividend Percentage × Par Value × Number of Shares
Dividend = 0.04 × 600 × 150
Dividend = 3,600
Therefore, the dividend is P3,600.

 Stock Yield Ratio and Market Value

Example: ABC Corporation, with a current market value of P65, gave a dividend of
P10 per share for its common stock. XYZ Corporation, with a current market value
of P145, gave a dividend of P15 per share. Use the stock yield ratio to measure how
much dividends shareholders are getting in relation to the amount invested.
ABC Corporation XYZ Corporation
Given: Given:
Dividend Per Share = P10 Dividend Per Share = P15
Market Value = P65 Market Value = P145
Find: Find:
Stock Yield Ratio Stock Yield Ratio
Dividend Per Share Dividend Per Share
Stock Yield Ratio = Stock Yield Ratio =
Market Value Market Value
10 15
Stock Yield Ratio = Stock Yield Ratio =
65 145
Stock Yield Ratio = 𝟎. 𝟏𝟓𝟑𝟖 𝐨𝐫 𝟏𝟓. 𝟑𝟖% Stock Yield Ratio = 𝟎. 𝟏𝟎𝟑𝟒 𝐨𝐫 𝟏𝟎. 𝟑𝟒%
ABC Corporation has a higher stock yield ratio than XYZ Corporation. Thus, it is
better to invest money in ABC Corporation than the other.
Source: General Mathematics Teaching Guide, 2016
5
 What’s More

NOW IT’S YOUR TURN!

Directions: Answer the following problems. Show your solutions and write them on
a separate sheet of paper.

1. A land developer declared a dividend of P10,000,000 for its common stock.

Suppose there are 600,000 shares of common stock, how much is the dividend per
share?

2. A certain company gave out P25 dividend per share for its common stock. The
market value of the stock is P92. Determine the stock yield ratio.

3. A certain corporation announced that a 5% dividend on a stock with a par value

of P300. Michelle owns 200 shares of stock with a par value of P300. How much is
the dividend he received?

What I Need to Remember

☑Stock – share in the ownership of a company

☑Dividend – Share in the company’s profit
☑Dividend Per Share – ration of the dividends to the number of
shares
☑Stock Market – a place where stocks can be bought or sold. The
stock market in the Philippines is governed by the Philippine Stock
Exchange (PSE)
☑Market Value – the current price of a stock at which it can be
sold.
☑Stock Yield Ratio – ratio of the annual dividend per share and
the market value per share. This is also called current stock yield.
☑Par Value – the per share amount as stated on the company’s
certificate.

6
 Lesson
12 Bonds

What I Need to Know

At the end of this lesson, you are expected to:
o define and explain terms related to bonds;
o illustrate terms related to bonds; and
o solve problems involving bonds.

What’s In

“
Let’s learn more as we enter Lesson 12! I’m teacher Mathew. I
will help you understand the lesson about bonds. Before we dig
Before we will start with the lesson proper, there are terms that you need to
deeper, allow me to ask, is it possible to lend money to companies
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We will discuss them in this lesson.

What is a bond?
A bond is simply a loan given to a company or government by an investor. By issuing
a bond, a company or government borrows money from investors, who in return are
paid interest on the money they have loaned.

Companies and governments issue bonds frequently to fund new projects or ongoing
expenses. Some investors use bonds in hopes of preserving the money they have
while also generating additional income. Bonds are often viewed as less risky
alternative to stocks.

Example
The city of Cebu wants to build a new baseball stadium, so it decided to issue bonds
to raise money. Each bond has a loan for P50,000, in which the city promises to pay
back in 10 years. To make this loan more attractive to investors, it agrees to pay an
annual interest rate of 5%, which in the bond world, also known as coupon rate.

If an investor buys a bond, he/she will receive P2,500 as 5% of P50,000 yearly and
after 10 years, he/she will receive the face value of P50,000.

7
 What’s New

What are Bonds? What should I know?

☑Bonds – a form of debt financing or raising money by borrowing from investors.

☑Investors are guaranteed interest payments and a return of their money at the
maturity date.
☑Uncertainty comes from the ability of the bond issuer to pay the bondholders.
Bonds issued by the government pose less risk than those private companies because
the government has a guaranteed funding (taxes) from which it can pay its loans.
☑Lower risk but lower yield
☑Can be appropriate for retirees (because of the guaranteed fixed income) or for
those who need the money soon (because they cannot afford to take risk at the stock
market)

Related Terms
☑Bond – interest-bearing security which promises to pay a stated amount of
money on the maturity date and regular interest payments called coupon.
☑Coupon – periodic interest payment that the bondholder receives during the time
between purchase date and maturity date; usually received semi-annually.
☑Price of Bond – the price of the bond at purchase time; denoted by P.
☑Coupon Rate – the rate per coupon payment period; denoted by r.
☑Par Value or Face Value – the amount payable on the maturity date; denoted
by F.
☑Term (or Tenor) of a Bond – fixed period of time (in years) at which the bond is
redeemable as stated in the bond certificate. It also pertains to the number of years
from time of purchase to maturity date.
☑Fair Price of the Bond – present value of all cash inflows to the bondholder.
☑Market Rate – the rate used to compute the present value of the future
payments.

Source: General Mathematics Teaching Guide, 2016

8
 Let’s illustrate these terms in bonds!

 Face Value ( F ) or Coupon Rate ( r )

Example. Determine the amount of the semi-annual coupon for a bond with a face
value of P400,000 that pays 10%, payable semi-annually for its coupons.
Given: Face Value F = P400,000
Coupon Rate r = 10% or 0.10 or 0.1
Find: Amount of Semi-annual Coupon (Half-year)
Solution:
Solve first Annual Coupon Amount
Annual Coupon Amount = Face Value × Coupon Rate
Annual Coupon Amount = 400,000 × 0.10
Annual Coupon Amount = 40,000
Then, solve for Semi-Annual Coupon Amount
1
Semi − annual Coupon Amount = Annual Coupon Amount ×
2
1
Semi − annual Coupon Amount = 40,000 ×
2
Semi − annual Coupon Amount = 20,000
Therefore, the amount of the semi-annual coupon is P20,000.

 Fair Price of the Bond and Market Rate

Example: Suppose a bond has a face value of P200,000 and its tenor is 10 years
from now. The coupon rate is 5% payable semi-annually. Find the fair price of this
bond if the annual market rate is 4%.
Given: Face Value F = P200,000
Coupon Rate r = 5%
Term of the Bond = 10 years
Payment per year = 2 (semi-annually)
Number of Periods (Payments) = 2(10) = 20
Market Rate = 4%

Find: Fair Price of the Bond

Solution:
Step 1: Find the semi-annual coupon amount
1
Semi − annual Coupon Amount = Face Value × Coupon Rate ×
2
1
Semi − annual Coupon Amount = 200,000 × 0.05 ×
2
Semi − annual Coupon Amount = 5,000
The bondholder receives 20 payments of P5,000 each and 200,000 at t = 10.
Step 2: Find the Present value of P200,000
𝐹 200,000
𝑃= = = 135,112.83
(1 + 𝑗)𝑛 (1 + 0.04)10
 𝑛 = 10 𝑠𝑖𝑛𝑐𝑒 𝑡ℎ𝑒 𝑡𝑒𝑟𝑚 𝑖𝑠 𝑎𝑡 10 𝑦𝑒𝑎𝑟𝑠
Step 3: Convert 4% to equivalent semi-annual rate
Convert semi-annually payments with annual compounding of 4%
Use the Formula and look for 𝑖

9
 (𝟏 + 𝒊)𝒏 = 𝟏 + 𝒊𝟏𝟐
𝑤ℎ𝑒𝑟𝑒 𝑛 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑦𝑚𝑒𝑛𝑡 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟
 (𝟏 + 𝒊)𝟐 = 𝟏 + 𝟎. 𝟎𝟒
𝑝𝑎𝑦𝑚𝑒𝑛𝑡 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟 𝑖𝑠 2 𝑠𝑖𝑛𝑐𝑒 𝑠𝑒𝑚𝑖 − 𝑎𝑛𝑛𝑢𝑎𝑙 𝑚𝑒𝑎𝑛𝑠 𝑡𝑤𝑖𝑐𝑒 𝑎 𝑦𝑒𝑎𝑟
 (𝟏 + 𝒊)𝟐 = 𝟏. 𝟎𝟒
𝟐
 𝟏 + 𝒊 = √𝟏. 𝟎𝟒
 𝟏 + 𝒊 = 𝟏. 𝟎𝟏𝟗𝟖𝟎𝟑 …
 𝒊 = 𝟏. 𝟎𝟏𝟗𝟖𝟎𝟑 … − 𝟏 ►transfer 1 from the left side to the right side
then proceed to subtraction
𝒊 = 𝟎. 𝟎𝟏𝟗𝟖𝟎𝟑 …
Step 4: Find the present value of the coupon at 4% market rate
1 − (1 + 𝑖)−𝑛 1 − (1 + 0.019803 … )−20
𝑃=𝑅 = 5,000 = 81,912.09
𝑖 0.019803 …
Step 5: Add the Present Values in Step 3 and Step 4
𝑃𝑟𝑖𝑐𝑒 = 135,112.83 + 81,912.09 = 217,024.92
Therefore, P217,024.92 is the fair price equivalent to all future payments of the
annual market rate of 4%.

What’s More
NOW IT’S YOUR TURN!
Directions: Answer the following problems. Show your solutions on a separate sheet
of paper.

1. Determine the amount of semi-annual coupon paid for a 3% bond with a face value
of P90,000 which matures after 20 years.

2. Suppose a bond has a face value of P100,000 and its tenor is 5 years from now.
The coupon rate is 5% payable semi-annually. Find the fair price of this bond if the
annual market rate is 5%.

What I Need to Remember

☑Bond – interest-bearing security which promises to pay a stated amount of money on the
maturity date and regular interest payments called coupons.
☑Price of Bond – the price of the bond at purchase time; denoted by P.
☑Coupon Rate – the rate per coupon payment period; denoted by r.
☑Par Value or Face Value – the amount payable on the maturity date; denoted by F.
☑Term (or Tenor) of a Bond – fixed period of time (in years) at which the bond is redeemable
as stated in the bond certificate.
☑Fair Price of the Bond – present value of all cash inflows to the bondholder.
☑Market Rate – the rate used to compute the present value of the future payments.

10
 Lesson Market Indices for
13 Stocks and Bonds

What I Need to Know

At the end of this lesson, you are expected to:
• describe the different markets for stocks and bonds; and
• analyze the different market indices for stocks and bonds.

What’s In

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This time, we will be discussing market indices

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What is an index?

Index – is a calculated average of many different components.

For instance, you and 10 of your friends each weighed yourselves and then you
calculated the average weight of the entire group, that would be an index!

Moreover, as your weights change, the index would change too.

What are the market indices in the Philippines?

The Philippine Stock Exchange Index, commonly known as PSEi, is a stock market
index of the Philippines that consists of 30 companies. These 30 companies are
carefully selected to represent the general movement of market prices.

The main platform for bonds or fixed income securities in the Philippines is the
Philippine Dealing and Exchange Corporation (PDEx). Unlike the stock indices, bond
market indices are far less common. In fact, other than certain regional bond indices
which have subindices covering the Philippines, our bond market does not typically
compute a bond market index.
Source: General Mathematics Teaching Guide, 2016

11
 What’s New

What are stock market indices? What should I know?

Stock indices are reported in the business section of magazines or newspapers, as

well as online (https://www.pse.com.ph/stockMarket/home.html). The following
table shows how a list of index value is typically presented (value is taken from
January 1, 2021).
Index Value Chg %Chg
PSEi 7,139.71 17.46 0.25▲
All Shares 4,272.61 18.34 0.43▲
Financials 1,447.64 8.95 0.62▲
Industrial 9,393.42 142.45 1.54▲
Holding Firms 7,354.65 30.96 0.42▲
Services 1,514.09 -2.18 -0.14▼
Mining and Oil 9,528.15 291.59 3.16▲
Property 3,664.47 -21.64 -0.59▼

What do we mean by this table?

The table above shows the meaning of the following terms:

1. Value – value of the index
2. Chg – change of the index from the previous trading day (example, value today
minus value yesterday)
3. %Chg – ratio of Change to Value (example, Chg divided by Value)

A stock market index is a statistical measure which shows changes taking place in
the stock market. To create an index, a few similar kinds of stocks are chosen from
amongst the securities already listed on the exchange and grouped together like the
table above.

The criteria of stock selection could be the type of industry, market capitalization or
the size of the company. The value of the stock market index is computed using
values of the underlying stocks. Any change taking place in the underlying stock
prices impact the overall value of the index. If the prices of most of the underlying
securities rise, then the index will rise and vice-versa.

In this way, a stock index reflects overall market sentiment and direction of price
movements of products in the financial, commodities or any other markets. As of
January 1, 2021, all other indices are rising except for Services and Property index.
Source: General Mathematics Teaching Guide, 2016

12
 Let’s dig more about stock tables!

Newspapers or magazines may also report on stock prices of individual companies

which summarize the price movement on selected stocks for the previous trading
day. The table below shows how information about stocks can be presented (values
are hypothetical).

52-WK 52-WK STOCK HI LO DIV VOL CLOSE NETCHG

HI LO (100s)
94 44 AAA 60 35.5 .70 2050 57.29 0.10
88 25 BBB 45 32.7 .28 10700 45.70 -0.2

Meaning of the following terms:

1. 52-WK HI/LO – highest/lowest selling price of the stock in the past 52 weeks.
2. HI/LO – highest/lowest selling price of the stock in the last trading day.
3. STOCK – three-letter symbol the company is using for trading
4. DIV – dividend per share last year
5. VOL (100s) – number of shares (in hundreds) traded in the last trading day
(In this case, stock AAA sold 2,050 shares of 100 which is equal to 20,500
shares)
6. CLOSE – closing price on the last trading day
7. NETCHG – net change between the two last trading days
(In the case of AAA, the net change is 0.10. The closing price the day before
the last trading day is P57.29 – P0.10 = P57.19)

Buying and Selling Stocks

If you are interested in investing in stocks, to buy or sell stocks, you may go to the
Philippine Stock Exchange personally. However, most transactions nowadays are
done by making a phone call to a registered broker or by logging on to a reputable
online trading platform. Those with accounts in online trading platforms may often
encounter a table like the following:
Bid Ask/Offer
Size Price Price Size
122 354,100 21.6000 21.8000 20,000 1
9 81,700 21.5500 21.9000 183,500 4
42 456,500 21.5000 22.1500 5,100 1
2 12,500 21.4500 22.2500 11,800 4
9 14,200 21.4000 22.3000 23,400 6

In the table above, the terms mean the following:

1. Bid Size – the number of individual buy orders and the total number of shares
they wish to buy. Source: General Mathematics Teaching Guide, 2016

13
 2. Bid Price – the price these buyers are willing to pay for the stock.
3. Ask Price – the price the sellers of the stock are willing to sell the stock.
4. Ask Size – how many individual sell orders have been placed in the online
platform and the total number of shares these sellers wish to sell.
Source: General Mathematics Teaching Guide, 2016

What’s More

NOW IT’S YOUR TURN!

Directions: Match the terms in Column A with their meanings found in Column B.
Use a separate sheet of paper for your answers.

Column A Column B

___1. Chg A. How many individual sell orders have been

placed in the online platform and the total
number of shares these sellers wish to sell.
___2. DIV B. The price the sellers of the stock are willing to
sell the stock
___3. %Chg C. The price these buyers are willing to pay for
the stock
___4. HI/LO D. The number of individual buy orders and the
total number of shares they wish to buy.
___5. Bid Size E. Net change between the two last trading days

___6. Bid Price F. Closing price on the last trading day

___7. NETCHG G. Number of shares (in hundreds) traded in the

last trading day.
___8. Ask Price H. Dividend per share last year.

___9. VOL (100s) I. Highest/lowest selling price of the stock in the

last trading day.
___10. 52-WK HI/LO J. Highest/lowest selling price of the stock in the
past 52 weeks.
K. The ratio of Chg to Value

L. Change of the index from the previous trading

day

14
 What I Need to Remember

• Value – value of the index

• Chg – change of the index from the previous trading day (example,
value today minus value yesterday)
• %Chg – ratio of Chg to Value (example, Chg divided by Value)
• 52-WK HI/LO – highest/lowest selling price of the stock in the
past 52 weeks.
• HI/LO – highest/lowest selling price of the stock in the last trading
day.
• STOCK – three-letter symbol the company is using for trading
• DIV – dividend per share last year
• VOL (100s) – number of shares (in hundreds) traded in the last
trading day
• CLOSE – closing price on the last trading day
• NETCHG – net change between the two last trading days
• Bid Size – the number of individual buy orders and the total
number of shares they wish to buy.
• Bid Price – the price these buyers are willing to pay for the stock
• Ask Price – the price the sellers of the stock are willing to sell the
stock
• Ask Size – how many individual sell orders have been placed in
the online platform and the total number of shares these sellers
wish to sell.

What I Can Do

Directions: Write S if the characteristic describes stocks and B if it describes bonds.

__________1. A form of equity financing or raising money by investors to be part

owners of the company.
__________2. A form of debt financing or raising money by borrowing from investors.
__________3. Investors are guaranteed interest payments and a return of their money
at the maturity date.
__________4. Investors can earn if the security prices increase, but they can lose
money if the security prices decrease or worse, if the company goes bankrupt.
__________5. It can be appropriate for retirees (because of the guaranteed fixed
income) or for those who need the money soon.

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 Assessment (Post-test)

Directions: Write the letter of the correct answer. Use a separate sheet of paper.

1. This term refers to interest-bearing security which promises to pay a stated

amount of money on the maturity date and regular interest payments called coupons.
A. Bonds B. Franchise C. Retail D. Stocks

2. What is the term that refers to the share in the ownership of a company?
A. Bonds B. Franchise C. Retail D. Stocks

3. In stocks, it refers to the annual dividend per share and the market value per
share.
A. Dividend C. Par Value
B. Dividend Per Share D. Stock Yield Ratio

4. What do you call to the place where stocks can be bought or sold?
A. Business Center C. Stock Market
B. Stock Enterprises D. Trade Center

5. It is the periodic interest payment that the bondholder receives during the time
between the purchase date and maturity date.
A. Fair Price of Bond C. Installment
B. Face Value D. Coupon

6. Which of the following is the stock exchange index of the Philippines?

A. IBOVESPA B. S&P 500 C. KOSPI D. PSEi

7. The following terms are commonly included in stock tables, EXCEPT;

A. LO B. VOL C. OPEN D. STOCK

8. Which of the following is a characteristic of bonds?

A. Investors can earn if the security prices increase, but they can lose money if
the security prices decrease.
B. A form of equity financing or raising money by allowing investors to be part
owners of the company.
C. Investors are guaranteed interest payments and a return of their money at the
maturity date.
D. It has high risk with a possibility of high returns

9. Which of the following DOES NOT belong to the group?

A. Industrial C. Outsources
B. Services D. Property
10. This refers to the price that the buyers are willing TO SELL for a stock.
A. Bid Price B. Ask Price C. Price Tag D. Selling Price

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11. A certain financial institution declared a P50,000,000 dividend for the common
stocks. If there are a total of 800,000 shares of common stock, how much is the
dividend per share?
A. ₱62.50 B. ₱64.50 C. ₱65.20 D. ₱66.25

12. A certain corporation announced that a 5% dividend on a stock with a par value
of P500. Michael owns 200 shares of stock with a par value of P500. How much is
the dividend he received?
A. ₱4,000 B. ₱5,000 C. ₱6,000 D. ₱7,000

13. What is the stock yield ratio if DEF Corporation, with a current market value of
P78, gave a dividend of P13 per share for its common stock?

A. 10.34% B. 12.63% C. 15.38% D. 16.67%

14. Determine the amount of the semi-annual coupon for a bond with a face value
of P200,000 that pays 8%, payable semi-annually for its coupons.
A. ₱8,000 B. ₱9,000 C. ₱16,000 D. ₱18,000

15. Suppose a bond has a face value of P300,000 and its tenor is 10 years from now.
The coupon rate is 6% payable semi-annually. Find the fair price of this bond if the
annual market rate is 4%.

A. ₱312,159.20 C. ₱351,024.92
B. ₱350,111.02 D. ₱355,104.22

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References
Textbook
Orines, F. B. (2016). Next Century Mathematics 11 General Mathematics. Pheonix
Publishing House Inc. with Fernando B. Orines. pp. 41 – 49.

PDF
Verzosa, Debbie Marie B. et al. (2016). General Mathematics Teaching Guide [PDF
File]. Quezon City, Philippines: Commission on Higher Education. pp 234-
245. Retrieved from https://www.lrmds.gov.ph

Avatars
All avatars used in this module are created originally using the Bitmoji mobile
application. Created on July 15, 2020.

Icons
All icons used in this module is taken from MS Office 365.

Images
Image 1. Accessed through https://www.signedmarco.com/investing-
philippine-stock-market-made-easy-stock-investment-guide-2017/

Congratulations!
You are now ready for the next module. Always remember the following:

1. Make sure every answer sheet has your

▪ Name
▪ Grade and Section
▪ Title of the Activity or Activity No.
2. Follow the date of submission of answer sheets as agreed with your
teacher.
3. Keep the modules with you AND return them at the end of the school year
or whenever face-to-face interaction is permitted.

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