Bonds - April 2021

Below is information about various bonds as of April 16, 2021, retrieved from www.schwab.com. The par value of the bonds is $1,000.

Issuer Name	Coupon Rate (%)	Years to Maturity	Price	Yield to Maturity (%)	Semi- annual?
Ross Stores	0.875%	5.00	$978.95		Yes
TJX Companies	2.25%	5.42		1.200%	Yes

Use the information above to complete the table below. Then answer the 7 questions that follow.

Issuer	Price ($)	Annual Coupon ($)	YTM (%)	CY (%)	CGY (%)
Ross Stores
TJX Companies

a) What is the yield to maturity for Ross Stores bonds?

b) What is the current yield for Ross Stores bonds?

c) What is the capital gains yield for Ross Stores bonds?

d) What is the price of The TJX Companies bonds?

e) What is the current yield for The TJX Companies bonds?

f) What is the capital gains yield for The TJX Companies bonds?

g) The TJX Companies bonds can be called in 4.0 years and have a call value of $1,060. (Refer to the data above to make this calculation.) What is the yield to call? Are the bonds likely to be called?