Question

36. Find the yield to maturity (YTM) for a 10-year, 10% annual coupon rate, $1,000 par...

36. Find the yield to maturity (YTM) for a 10-year, 10% 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. 5.11% 6.91% 7.64% 8.86%

5.11%

6.91%

7.64%

8.86%

Using the information from Question 36, calculate the bond’s current yield.

6.20%

6.57%

6.80%

8.21%

Using the information from Question 36 and 37, calculate the bond’s capital gain yield.

-0.35%

-1.27%

0.35%

1.27%

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