Question
One year ago, Henderson Honey issued a 20-year bond for $1,000. The bond's coupon rate of interest is 6 percent, and interest is paid annually
One year ago, Henderson Honey issued a 20-year bond for $1,000. The bond's coupon rate of interest is 6 percent, and interest is paid annually. The current value of the bond is $851.
a/ What are the current yield and capital gains yield Henderson's bondholders earned during the year? Do not round intermediate calculations. Round your answers to one decimal place. Use a minus sign to enter a negative value, if any.
Current yield: %
Capital gains yield: %
b/ What is the bond's yield to maturity today? Do not round intermediate calculations. Round your answer to one decimal place.
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