Question
A 04.80% annual coupon, 18-year bond has a yield to maturity of 09.70%. Assuming the par value is $1,000 and the YTM is expected not
A 04.80% annual coupon, 18-year bond has a yield to maturity of 09.70%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year.
a) What should the price of the bond be today? and what is it expected to be in 1 year?
b) What is the expected capital gains yield for this bond?
c) What is the expected current yield for this bond?
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Small Fund Management
Authors: K. K.
1st Edition
979-8866391837
