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A 6% annual coupon bond has 11 years remaining until maturity. Par value is $1000. The required rate of return (yield to maturity)on the bond
A 6% annual coupon bond has 11 years remaining until maturity. Par value is $1000. | |||||
The required rate of return (yield to maturity)on the bond is 8.5%. | |||||
Compute the price of the bond today using the appropriate Excel formula | |||||
Compute the price of the same bond if it has 10 years remaining to maturity instead of 11. | |||||
What is the capital gains yield on the bond? | |||||
What is the current yield on the bond? | |||||
What is the total yield on the bond? | |||||
What will the bond's price be at the instant before it matures? | |||||
SHOW WORK HERE, HIGHLIGHT FINAL ANSWERS IN YELLOW | |||||
11 years | 10 years | ||||
PV | |||||
RATE | |||||
NPER | |||||
PMT | |||||
FV | |||||
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