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A 5.22% coupon, 17.0 -year annual bond has a yield to maturity of 6.46%. Assuming the par value is 1,000 and the YTM does not
A 5.22% coupon, 17.0 -year annual bond has a yield to maturity of 6.46%. Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following:
- a. Price of the bond today:
- b. Price of the bond in one year:
- c. Capital gains yield ( answer as a percentage with 2 decimal places):
- d. Current Yield ( answer as a percentage with 2 decimal places):
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To compute the requested values we can use the following formulas a Price of the bond today The pric...
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Fixed Income Analysis
Authors: Barbara S. Petitt
5th Edition
1119850541, 978-1119850540
