Question
A Microsoft, Incorporated bond has a coupon rate of 8.5%, matures in 12 years, and sells for $835.60 (assume coupons are paid on a semi-annual
A Microsoft, Incorporated bond has a coupon rate of 8.5%, matures in 12 years, and sells for $835.60 (assume coupons are paid on a semi-annual basis).
a) What is the YTM for this Microsoft, Inc. Corporate Bond?
b) What is the current yield for the first year on this bond?
c) What is the expected percentage capital gain or loss for the first year on this bond?
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Engineering economy
Authors: Leland Blank, Anthony Tarquin
7th Edition
9781259027406, 0073376302, 1259027406, 978-0073376301
