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A bond has a 10 percent coupon rate, makes annual payments, matures in 12 years, and has a yield-to-maturity of 7 percent. Eleven years from
A bond has a 10 percent coupon rate, makes annual payments, matures in 12 years, and has a yield-to-maturity of 7 percent. Eleven years from now the bond will have 1 year until maturity. Assume market interest rates are at 7 percent, the same place they were when the bond was issued. Given this: What will be the bond's price 11 years from now? What will be the current yield eleven years from now? . What is the expected capital gains yield eleven years from now? How does you answers to part (1) and (m) compare with your answers to parts (b) and (c)? A bond has a 10 percent coupon rate, makes annual payments, matures in 12 years, and has a yield-to-maturity of 7 percent. Eleven years from now the bond will have 1 year until maturity. Assume market interest rates are at 7 percent, the same place they were when the bond was issued. Given this: What will be the bond's price 11 years from now? What will be the current yield eleven years from now? . What is the expected capital gains yield eleven years from now? How does you answers to part (1) and (m) compare with your answers to parts (b) and (c)
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