Question
A 20-year 7.8% coupon $1000-par bond has a YTM of 9%. What is the bond's price? 2. A 10-year $5000-par 5% coupon municipal bond sells
2. A 10-year $5000-par 5% coupon municipal bond sells for $4600. What is the bond's YTM?
3. A 30-year $1000-par 5.5% coupon Treasury bond sells for $685. What is the bonds YTM?
4. A 10-year $1000-par 6% coupon bond has a YTM of 8.5%. What is the bond's expected capital gains yield?
5. If you sell the bond in the previous questions 4 years after buying it, and the bond's yield has changed to 7.5%, what is your HPR?
6. What sale price would have been required in order for the investor to have earned a 12% HPR?
7. What sale price would have been required in order for the investor to have earned a 12% HPR?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
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