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part c please 2) Budinger Corporation's bonds sell for $950. They have 15 years to maturity, a $50 annual coupon and a face value of
part c please
2) Budinger Corporation's bonds sell for $950. They have 15 years to maturity, a $50 annual coupon and a face value of $1,000. a. (5 points) What is the Yield to maturity? 5.49 b. (5 points) What is the current yield (or coupon yield)? (c.) (10 points) Now imagine that you bought the bonds for $950 and the day after you buy them, interest rates for bonds like this go up by one percentage point (so if they were, for example 8%, they are now 9% just an example). After that change, the interest rates remain constant. Under these conditions, what will your capital gains yield be in the first year Step by Step Solution
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