Question
A 6.2% coupon, 18-year annual bond has a yield to maturity of 7.6%. Assuming the par value is $1,000 and the YTM does not change
A 6.2% coupon, 18-year annual bond has a yield to maturity of 7.6%. Assuming the par value is $1,000 and the YTM does not change over the next year, what will the price of the bond be today? What will the bond price be in one year to nearest cent? What is the capital gains yield for this bond? (4 decimals)
Price of the bond today (nearest cent):
Price of the bond in one year (nearest cent):
Capital gains yield (4 decimal places):
Current Yield (4 decimal places):
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The Smart Investors Survival Guide
Authors: Charles Carlson
1st Edition
0385503873, 978-0385503877
