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A) As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 22 years, the coupon rate is 12%

A)

As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 22 years, the coupon rate is 12% paid annually, and the discount rate is 12%.

What is this bond's coupon payment?

B)

A bond offers a coupon rate of 14%, paid semiannually, and has a maturity of 6 years. Face value is $1,000. If the current market yield is 5%, what should be the price of this bond?

C)

A bond offers a coupon rate of 12%, paid annually, and has a maturity of 16 years. The current market yield is 14%. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?

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