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Consider a $5,000 par value 15-year 9% coupon BB-rated bond that pays out coupon payments monthly. The bond is now being priced to generate an
Consider a $5,000 par value 15-year 9% coupon BB-rated bond that pays out coupon payments monthly. The bond is now being priced to generate an annual YTM of 10.8%. Calculate the intrinsic value (or price), current yield and capital gains yield of this discount/par/premium (circle one) bond.
Please note that the answers for price and capital gains are noted below but please show calculations/work on how to get these answers and the missing ones as well.<$4,332.78; ?; 0.41%>
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