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An unconventional bond offers no coupon for 8 years. After that, the bond will pay a $300 coupon payment each year for 6 years. The
An unconventional bond offers no coupon for 8 years. After that, the bond will pay a $300 coupon payment each year for 6 years. The bond matures in 14 years and has face value of $10,000. The YTM is 7%. What is the coupon rate during the years for which a coupon payment is made? [c] What is the bond value today? What is current yield this year? What is capital gains yield this year? What is bond value in 6 years? What is current yield in 6 years? What is capital gains yield in 6 years?
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1st Edition
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