Question
You are given the following partial quote from a newspaper dated November 3, 2022. Assume the bond has a face value of $1,000 and pays
You are given the following partial quote from a newspaper dated November 3, 2022. Assume the bond has a face value of $1,000 and pays interest semi-annually.
Company(TICKER) XYZ (XYZ)
COUPON-MATURITY LAST 6.00%
PRICE $1,114.00
What is the yield to maturity on this bond? Is this bond a premium bond or discount bond?
What is the current yield on this bond assuming that you buy the bond at Nov 3, 2022 hold it for one year? What is the capital gain yield?
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Basic Finance An Introduction to Financial Institutions Investments and Management
Authors: Herbert B. Mayo
10th edition
1111820635, 978-1111820633
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