Question
2. Price a bond with a 4 1/2 coupon rate and 20 years to maturity. The yield to maturity on similar bonds is 5.00%. Assume
2. Price a bond with a 4 1/2 coupon rate and 20 years to maturity. The yield to maturity on similar bonds is 5.00%. Assume annual payments. a. Calculate the bond price. b. Compute the bond current yield. c. Compute the bond price one year later and the capital gains rate d. Show the relationship between the current yield, the capital gains rate and the yield to maturity.
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Research Methods Statistics and Applications
Authors: Kathrynn A. Adams, Eva Marie K. Lawrence
1st edition
1452220182, 978-1452220185
