A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that the bond has just been issued.) Basic Input Data: Years to maturity Periods per year Periods to maturity Coupon rate: Par value: Periodic payment: Current price Call price: Years till callable: Periods till callable: 201 21 40 8% $1,000 $40 $1,100 $1,0401 5 10 a. What is the bond's yield to maturity? Peridodic YTM Annualized Nominal YTM 3.53% 7.06% Hint: This is a nominal rate, not the effective rate. Nominal rates are generally quoted. b. What is the bond's current yield? Current yield Current yield Current yield Annual Coupon 80.00 7.27% Current Price Hint: Write formula in words. $1,100 Hint: Cell formulas should refer to Input Section (Answer) c. What is the bond's capital gain or loss yield? Cap. Gain/loss yield = Annual YTM Cap. Gain/loss yield = 7.06% Cap. Gain/loss yield -0.21% Current Yield Hint: Write formula in words. 7.27% Hint: Cell formulas should refer to Input Section (Answer) Alternatively, the bond's capital gain/loss yield can be calculated by applying the formula: (assuming the same yield to maturity next year): Cap. Gain/loss yield (Bond price in year 1 - Bond price in year 0) 1 (Bond price in year 0) ??? ??? ?? ??? Show work 11 1 1 1