Question

43.Find the yield to maturity for a 15-year, 8% annual coupon rate, $1,000 par value bond...

43.Find the yield to maturity for a 15-year, 8% annual coupon rate, $1,000 par value bond if the bond sells for $1,218 currently? We assume that interest is paid on this bond annually.

2.90%

5.79%

6.64%

6.86%

Using the information from Question 43, calculate the bond’s current yield.

6.20%

6.57%

6.80%

7.18%

Using the information from Question 43 and 44, calculate the bond’s capital gain yield.

-0.78%

0.78%

6.22%

6.57%
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Answer #1

ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE. THUMBS UP PLEASE.

1. 5.79%

2. 6.57%

3. -0.78%

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