Question
Bond Yields and Rates of Return A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at
Bond Yields and Rates of Return
A 30-year, 10% 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 $1,050. (Assume that the bond has just been issued.)
a. What is the bond's yield to maturity? Round your answer to two decimal places.
b. What is the bond's current yield? Round your answer to two decimal places.
c.What is the bond's capital gain or loss yield? Loss should be indicated with minus sign. Round your answer to two decimal places.
d.What is the bond's yield to call? Round your answer to two decimal places.
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