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You are given the following data for a set of coupon bonds with different maturity dates in the table below. Also assume the current interest
You are given the following data for a set of coupon bonds with different maturity dates in the table below. Also assume the current interest rate (YTM) is 10%, the Face Value of each bond is $1000, and the coupon rate is 10%. The current price is in the table . Fill in the remaining columns using the information below.
Years to Maturity 30 20 10 5 2 1 Current Yield 10% 10% 10% 10% 10% 10% Current Price Pt $1000 $1000 $1000 $1000 $1000 $1000 Next Year's Price Pt+1 Rate of Capital Rate of Return R Gain g Now assume the interest rate (YTM) increases to 12%. Determine the Price of the bond next period for each bond (UPDATE "N" ONE YEAR). Determine the Rate of Capital Gain or Loss for each bond. Determine the Rate of Return for each bond. (FILL IN THE TABLE). Show your work for the 30-year bond and 20-year bond for the last 3 columns. NOT how you entered the information into your calculator or an Excel file.
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