Question
Bond A Bond B Bond C Expected capital gains yield fill in the blank 17 % fill in the blank 18 % fill in the
Bond A | Bond B | Bond C | |
Expected capital gains yield | fill in the blank 17 % | fill in the blank 18 % | fill in the blank 19 % |
Expected total return | fill in the blank 20 % | fill in the blank 21 % | fill in the blank 22 % |
Mr. Clark is considering another bond, Bond D. It has a 6% semiannual coupon and a $1,000 face value (i.e., it pays a $30 coupon every 6 months). Bond D is scheduled to mature in 9 years and has a price of $1,100. It is also callable in 5 years at a call price of $1,030.
What is the bond's nominal yield to maturity? Round your answer to two decimal places.
fill in the blank 23 %
What is the bond's nominal yield to call? Round your answer to two decimal places.
fill in the blank 24 %
Calculate the price of each bond (A, B, and C) at the end of each year until maturity, assuming interest rates remain constant. Round your answers to the nearest cent.
Years Remaining | ||||
Until Maturity | Bond A | Bond B | Bond C | |
12 | $ fill in the blank 32 | $ fill in the blank 33 | $ fill in the blank 34 | |
11 | $ fill in the blank 35 | $ fill in the blank 36 | $ fill in the blank 37 | |
10 | $ fill in the blank 38 | $ fill in the blank 39 | $ fill in the blank 40 | |
9 | $ fill in the blank 41 | $ fill in the blank 42 | $ fill in the blank 43 | |
8 | $ fill in the blank 44 | $ fill in the blank 45 | $ fill in the blank 46 | |
7 | $ fill in the blank 47 | $ fill in the blank 48 | $ fill in the blank 49 | |
6 | $ fill in the blank 50 | $ fill in the blank 51 | $ fill in the blank 52 | |
5 | $ fill in the blank 53 | $ fill in the blank 54 | $ fill in the blank 55 | |
4 | $ fill in the blank 56 | $ fill in the blank 57 | $ fill in the blank 58 | |
3 | $ fill in the blank 59 | $ fill in the blank 60 | $ fill in the blank 61 | |
2 | $ fill in the blank 62 | $ fill in the blank 63 | $ fill in the blank 64 | |
1 | $ fill in the blank 65 | $ fill in the blank 66 | $ fill in the blank 67 | |
0 | $ fill in the blank 68 | $ fill in the blank 69 | $ fill in the blank 70 |
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