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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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