A bond with a face value of $1,000 has a 10-year maturity and an 8.5 percent annual coupon. The bond has a current yield of 8 percent. What is the bonds yield to maturity?

. MJI Corporation bonds mature in 6 years and have a yield to maturity of 8.5 percent.

The par value of the bonds is $1,000. The bonds have a 10 percent coupon rate and

pay interest on a semiannual basis. Assuming there are no changes to interest rates

during the course of the year, what are the current yield and capital gains yield on the

bonds for this year?

12. A bond that matures in 10 years sells for $925. The bond has a face value of $1,000 and an 8 percent annual coupon.

i. What is the bonds current yield?

ii. What is the bonds YTM?

iii. Assume the YTM remains the same for the next three years, what will be the price of the bond three years from today?