Question
The interest rate on a one year coupon bond is 4%. The par value is $120 and the coupon rate is 5%. a. Assume you
The interest rate on a one year coupon bond is 4%. The par value is $120 and the coupon rate is 5%.
a. Assume you paid $100 for the bond. What is the yield to maturity?
b. What is the current yield? (2 pts)
c. Did you have a capital gain or loss? (1 pts)
Please help me with this, i am stuck
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
