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Problem-7-109 Current Yield, Capital Gains, And-Yield-To-Maturity: 'Hooper Printing Inc. has bonds outstanding with-9-years-left-to-maturity. The bonds-have-an-8% annual-coupon rate and were issued-1 year ago at their par
Problem-7-109 Current Yield, Capital Gains, And-Yield-To-Maturity: 'Hooper Printing Inc. has bonds outstanding with-9-years-left-to-maturity. The bonds-have-an-8% annual-coupon rate and were issued-1 year ago at their par value-of-$1000. However, due to changes in interest rates, the bond's market price has fallen-to-$901.40. The capital gains yield last year was--$9.86%. I a. What is the yield to maturity? b. For the coming year, what are the expected current and capital gains?' c. Will the actual realized yields be equal to the expected yields-if-interest rates change
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