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Congratulations, you have been hired as an analyst at the Procter and Gamble Co. (PG). It is November 1, 2020. PG just made a coupon
| Congratulations, you have been hired as an analyst at the Procter and Gamble Co. | ||||||||
| (PG). It is November 1, 2020. PG just made a coupon payment (semi-annual) on its | ||||||||
| "8% 2047" bonds that mature on November 1, 2047. The bonds currently sell for 106 | ||||||||
| with a par value of 100. Please show equation and work. | ||||||||
| a. What is the yield to maturity on the PG 2047 bond? | ||||||||
| YTM = | ||||||||
| b. What is the Current Yield? The Capital Gains Yield? | ||||||||
| Current Yield = | ||||||||
| Capital Gains Yield = | ||||||||
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakin
7th Global Edition
0273754440, 9780273754442
