Bond Valuation

Years to maturity

Number of coupon payment peryear

Coupon rate

Parvalue

Yield to maturity

b$.$ Calculating the price of each of the three bonds

$V_{BO}$

Bond $A$

Bond B

Bond C

c$.$ Calculating the current yield for each of the three bonds

Current yield

d$.$ Calculating the price of each bond $1$ year from now, the expected capital gains yield for each bond, and the expected total return for each bond

Years to maturity

$\backslash$table$[[$Bond A$,$Bond B$,$Bond C$],[11,11,11]]$

$V_{B1}$

Expected CG Yield

Expected Total Retum

e$.$ Mr$.$ Clark is considering another bond, Bond D$.$

Years to maturity

$\backslash$table$[[$Number of coupon payment per year,$7],[$Coupon rate,$2],[$Par value,$7\%$