Question
Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following
Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds:
Bond A has a 13% annual coupon, matures in 12 years, and has a $1,000 face value.
Bond B has an 11% annual coupon, matures in 12 years, and has a $1,000 face value.
Bond C has a 9% annual coupon, matures in 12 years, and has a $1,000 face value.
Each bond has a yield to maturity of 11%.
What is the expected current yield for each bond in each year? Round your answers to two decimal places.
| Years Remaining | ||||
| Until Maturity | Bond A | Bond B | Bond C | |
| 12 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 11 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 10 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 9 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 8 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 7 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 6 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 5 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 4 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 3 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 2 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 1 | fill in the blank % | fill in the blank % | fill in the blank % | |
What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places.
| Years Remaining | ||||
| Until Maturity | Bond A | Bond B | Bond C | |
| 12 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 11 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 10 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 9 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 8 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 7 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 6 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 5 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 4 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 3 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 2 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 1 | fill in the blank % | fill in the blank % | fill in the blank % | |
What is the total return for each bond in each year? Round your answers to two decimal places.
| Years Remaining | ||||
| Until Maturity | Bond A | Bond B | Bond C | |
| 12 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 11 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 10 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 9 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 8 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 7 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 6 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 5 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 4 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 3 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 2 | fill in the blank % | fill in the blank % | fill in the blank % | |
| 1 | fill in the blank % | fill in the blank % | fill in the blank % | |
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The Geography Of Finance
Authors: Gordon L. Clark, Darius Wójcik
1st Edition
0199213364, 978-0199213368
