Question
use the following corporate bond quote information to answer the questions that follows. since this is a corporate bond, assume the company makes semi-annual coupon
use the following corporate bond quote information to answer the questions that follows. since this is a corporate bond, assume the company makes semi-annual coupon payments and also assume the bond matures on today's date in its maturity year.
Bond Cur.Yld. Vol. close Net Chg.
Doh! 9 1/2 18 9.0 5 105 1/2 -1/4
Doh! 8 1/2 21 9.4 10 90 1/4 -1/2
a.how much would each bond cost you yesterday if its face value were $1000?
b. what is each bond's yield to maturity?
c. what is each bond's expected capital gains yield today?
d. now imagine you purchased each bond today at the current price. a year later the yield to maturity for each bond falls by one percentage point. what is your total rate of return for each bond?
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