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You are given the following information concerning a noncallable, sinking fund debenture: Principal: $ 1 , 0 0 0 Coupon rate of interest: 8 percent
You are given the following information concerning a noncallable, sinking fund debenture:
Principal: $
Coupon rate of interest: percent
Term to maturity: years
Sinking fund: percent of outstanding bonds retired annually; the balance at maturity
If you buy the bond today at its face amount and interest rates rise to percent after three years have passed, what is your capital gain or loss? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Use a minus sign to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar.
$
If you hold the bond years, what do you receive at maturity?
Select
What is the bond's current yield as of right now? Round your answer to the nearest whole number.
Given your price in a what is the yield at maturity? Round your answer to the nearest whole number.
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