Question
ASAP Suppose you buy a 6.6 percent coupon bond today for $1,110. The bond has 7 years to maturity. a. What rate of return do
ASAP Suppose you buy a 6.6 percent coupon bond today for $1,110. The bond has 7 years to maturity. |
a. | What rate of return do you expect to earn on your investment?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
Rate of return | % |
b. | Two years from now, the YTM on your bond has increased by 2 percent, and you decide to sell. What price will your bond sell for?(Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
Price | $ |
Fooling Company has a 12 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $75. What is the yield to call (YTC) for this bond if the current price is 109 percent of par value?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
Yield to call | %
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