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Consider a bond with the following features: Maturity = 5 years YTM 4% Coupon Rate = 3% Face Value = $1,000 Fill-in the blank cells

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Consider a bond with the following features: Maturity = 5 years YTM 4% Coupon Rate = 3% Face Value = $1,000 Fill-in the blank cells in the table for this bond. Assume the YTM stays at 4% over the life of the bond. TODAY 1 3 4 2 Year ? ? Bond Price From From From From From period period 3 to 4 4 to 5 period period period 2 to 3 1 to 2 0 to 1 ? ? ? ? Current Yield ? ? ? ? Capital Gains/Loss ? ? ? ? Total Return Use Bond Return Figure 2 from the Tophat book as an example

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