part 2

Intro One year ago, Gangnam Inc. issued a 12-year, 6% semiannual coupon bond at its par value of $1,000. The bond can be called in 8 years at a price of $1,100 and it now sells for $924.16. The bond has a yield to maturity of 7%. IB Attempt 4/10 for 1.28 pts. Part 1 What is the current yield? 6.49% Correct Current yield = Annual interest / Bond price Coupon rate Face value / Bond price = 0.061,000/924.16 = 0.0649 Part 2 - Attempt 1/10 for 1.5 pts. What is the expected capital gains yield for the coming year? + decimals Submit