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A) Malko Enterprises bonds currently sell for $1,075. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What

A)

Malko Enterprises bonds currently sell for $1,075. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What is their current yield?

6.98%

7.50%

7.88%

8.27%

8.68%

B)

What is the capital gains yield in problem #13? Hint: Use the relationship YTM = CY + CGY.

-1.00%

-0.31%

0.28%

0.84%

1.93%

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