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Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 4 years at
Bond Yields and Rates of Return
A 10-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,060. The bond sells for $1,100. (Assume that the bond has just been issued.)
a. What is the bonds yield to maturity? | |
b. What is the bonds current yield? | |
c. What is the bonds capital gain or loss yield? | |
d. What is the bonds yield to call? |
a. YTM = % | |
b. Current yield = % | |
c. Capital Gain/Loss Yield = % | |
d. Yield to call = % |
Please show calculations with a financial calculator :)
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