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The Benson Corporation issued a new series of bonds on January 1, 2010. The bonds were sold at par ($1,000), had an 8% coupon, and
The Benson Corporation issued a new series of bonds on January 1, 2010. The bonds were sold at par ($1,000), had an 8% coupon, and will mature in 15 years on December 31, 2024. Coupon payments are made semi-annually (on June 30 and December 31). A) Find the current yield, capital gains yield, and total yield on January 1, 2013, given the price as determined in Part B. B) Suppose you purchase a Benson bond for $950 on July 1, 2020 (4.5 years before maturity). What are the YTM, the current yield, and the capital gains yield for that date
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