Question
q6aCurrent yield, capital gains yield, and yield to maturity Hooper Printing Inc. has bonds outstanding with 10 years left to maturity. The bonds have an
q6aCurrent yield, capital gains yield, and yield to maturity Hooper Printing Inc. has bonds outstanding with 10 years left to maturity. The bonds have an 7% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $810.40. The capital gains yield last year was - 18.96%. What is the yield to maturity? Round your answer to two decimal places. %
For the coming year, what is the expected current yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places. %
For the coming year, what is the expected capital gains yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places. %
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