Question
Use the following bond quote information reported by FINRA on this Akamai Technology Bond that pays semi-annual coupons to answer questions 11 through 13. Bond
Use the following bond quote information reported by FINRA on this Akamai Technology Bond that pays semi-annual coupons to answer questions 11 through 13.
Bond Symbol Coupon Maturity Close Change Akamai Tech AKAM 6.500% Mar 2040 92.250 -0.413 (Beginning Date is March of 2020)
11. What is the current yield of this bond?
a. 7.24% b. 3.52% c. 6.50% d. 6.84% e. 7.05%
12. What is the yield-to-maturity on this bond?
a. 3.62% b. 7.24% c. 3.58% d. 6.31% e. 6.84%
13. What is the expected capital gain or capital loss over the first year of holding this bond?
a. + 0.19% b. - 0.19% c. - 1.90% d. - 0.95% e. + 0.10%
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