Question
Problem 7-11 Bond yields One year ago Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond
Problem 7-11 Bond yields
One year ago Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,065, and it now sells for $1,230.
a. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.
b. What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.
c. What is the current yield?
d. What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calcuation, if reqired. Round your answer to two decimal places.
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