A bond has a $1,000 par value, 10 years to maturity, a 7% annual coupon, and sells for $985. a. What is its current yield? b. What is its yield to maturity (YTM)? c. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today?

: Nungesser Corporations outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 8 years to maturity, and an 8.5% YTM. What is the bonds price?

6 years ago, the Singleton Company issued 20-year bonds with a 14% annual coupon rate at their $1,000 par value. The bonds had a 9% call premium, with 5 years of call protection. Today, Singleton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Explain why the investor should or should not be happy that Singleton called them

Current yield, capital gains yield, and yield to maturity: Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 8% annual coupon rate and were issued 1 year ago at their par value of $1,000, but due to changes in interest rates, the bonds market price has fallen to $9040. The capital gains yield last year was -9.86%.

What is the yield to maturity?

For the coming year, what is the expected current yield and the expected capital gains yield?

Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ?

Last year, Joan purchased a $1,000 face value corporate bond with an 11% annual coupon rate and a 10-year maturity. At the time of the purchase, it has an expected yield to maturity of 9.79%. If Joan sold the bond today for $1,060.49, what rate of return would she have earned for the past year?