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# 2 – Jay’s Grappling Gym has an outstanding bond that has a $1,000 par value...

# 2 – Jay’s Grappling Gym has an outstanding bond that has a $1,000 par value and a 6.5% coupon rate. Interest is paid semi-annually. The bond has 13 years remaining until it matures. Today the going interest rate is 10.5 percent, and it is expected to remain at this level for many years in the future. Compute the a) bond’s current yield, b) current gains yield that the bond will generate this year, and c) total return generated in Year 3. Answer with an explanation of how to find solutions utilizing a financial calculator.

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