Question
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,270. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. %
What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places. %
Would an investor be more likely to earn the YTM or the YTC? What is the current yield? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Round your answer to two decimal places. %
What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calculation, if required. Negative value should be indicated by a minus sign. Round your answer to two decimal places.
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