Question
Consider the following bond quotes for ABC and XYZ Corp. It is June 27, 2020. You must provide equations for each of the questions .
Consider the following bond quotes for ABC and XYZ Corp.
It is June 27, 2020. You must provide equations for each of the questions.
Issuer Name Coupon Maturity Last Change Yield%
ABC Corp. 4.375 12/27/2038 92.5133 -0.315 ?????
XYZ Corp 0.000 06/27/ 2031 46.9150 +0.234 ?????
Note that yields for ABC and XYZ Corp bonds are all semiannually compounded.
a.(6 points) Supply the missing information (yield%) for each of the bonds.
b.(6 points) What are the current yield and expected capital gains yield for the next year for ABC Corp bond?
c.(2 points) What was the yesterday's price for ABC Corp bond?
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