Question
A bond has coupon rate of 6%, YTM of 9%, face value of $1,000, and matures in 11 years. Coupon payments are made semiannually. What
A bond has coupon rate of 6%, YTM of 9%, face value of $1,000, and matures in 11 years. Coupon payments are made semiannually.
What is bond value today? ["$795.84", "$793.23", "$1,206.77", "$380.11"]
What is this year's current yield? ["7.54%", "4.97%", "7.56%", "3.78%"]
What is this year's capital gains yield? ["1.44%", "1.46%", "5.22%", "4.97%"]
What is bond value in 7 years? ["$902.81", "$1,098.94", "$901.06", "$846.66"]
What is current yield in 7 years? ["6.65%", "3.33%", "7.09%", "6.67%"]
What is capital gains yield in 7 years? ["2.34%", "2.35%", "5.67%", "1.91%"]
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