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You bought a newly issued $1,000 par, 10-year, 6.60% coupon bond (with semiannual coupon payments) on May 1, 2017. You decided to check the value
You bought a newly issued $1,000 par, 10-year, 6.60% coupon bond (with semiannual coupon payments) on May 1, 2017. You decided to check the value and yields on the bond annually, so that you can keep track of your wealth. Your first check was to be done on May 1, 2018. On April 15, 2018, the yield to maturity for the bond changed to 6.90%. Calculate the one-year anniversary price of the bond based on the new yield to maturity. Report the new price to the nearest penny.
calculate the current yield
calculate the capital gains yield.
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