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Bond Yields and Rates of Return A 25 -year, 8% semiannual coupon bond with a par value of $1,000 may be called in 4 years
Bond Yields and Rates of Return A 25 -year, 8% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $950. (Assume that the bond has just been issued.) a. What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to two decima places. % b. What is the bond's current yield? Do not round intermediate calculations. Round your answer to two decimal places. % c. What is the bond's capital gain or loss yield? Capital loss yield, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. % d. What is the bond's yield to call? Do not round intermediate calculations. Round your answer to two decimal places. %
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