Question
An unconventional bond offers no coupon for 10 years. After that, the bond will pay a $500 coupon payment each year for 13 years. The
An unconventional bond offers no coupon for 10 years. After that, the bond will pay a $500 coupon payment each year for 13 years. The bond matures in 23 years and has face value of $10,000. The YTM is 8%.
What is the coupon rate during the years for which a coupon payment is made? [ Select ]
["0%", "Impossible to determine.", "50%", "5%"]
What is the bond value today? [ Select ] ["$3,533.64", "$7,986.98", "$10,000.00", "$7,628.87"]
What is current yield this year? [ Select ] ["0%", "14.15%", "6.55%", "8%"]
What is capital gains yield this year? [ Select ] ["8%", "1.45%", "0%", "-6.15%"]
What is bond value in 12 years? [ Select ] ["$10,000.00", "$7,858.31", "$7,986.98", "$7,628.87"]
What is current yield in 12 years? [ Select ] ["6.36%", "0%", "8%", "6.55%"]
What is capital gains yield in 12 years? [ Select ] ["0%", "1.45%", "1.64%", "8%"]
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