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Delray Auto are currently selling at $1,050, with 8% annual coupon payment and 1000 par. These bonds have 16 years left until maturity. What is
Delray Auto are currently selling at $1,050, with 8% annual coupon payment and 1000 par. These bonds have 16 years left until maturity.
- What is the yield to maturity?
- Assume yield to maturity remain the same, what is the price a year later (with 15 years left until maturity)?
- From current year to next year, calculate the current yield, capital gain, and total return from the bond?
Yield to maturity = ??
Price a year later = ??
Current yield = ??
Capital gain = ??
Total return = ??
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