Question
A 7.6% coupon, 7-year annual bond has a yield to maturity of 6.6%. Assuming the par value is $1,000 and the YTM does not change
A 7.6% coupon, 7-year annual bond has a yield to maturity of 6.6%. 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? What is the capital gains yield for this bond? 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) =
Please answer this question... ^^^^
I have an example below if it would help - however I do not need it answered
A 4.9% coupon, 5-year annual bond has a yield to maturity of 10%. 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? What is the capital gains yield for this bond? 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) =
Points Earned: | 0.0/4.0 | |
Correct Answer(s): | Price of the bond today (nearest cent) =: 806.67; Price of the bond in one year (nearest cent) =: 838.33; Capital gains yield (4 decimal places) =: 0.0392; Current Yield (4 decimal places) =: 0.0607 |
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