1 a 12-year 1000 par value 8 annual coupon bond currently, Ask an Expert

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1. A 12-year, $1,000 par. value, 8% annual coupon bond currently sells for %985. If the market rate of interest remains constant, what is the expected capital gain yield for the following year?

A. -0.25%,

b. 0.08%,

C.0.25%

2. A 12 year, 9% annaul coupon bond has a yield to maturity of 7.5% and a par value of $1,000 . The bond can be called four years from now at a call price of $1050. What is the bond's yield to call?

A. 6.73%

B. 7.10%

C. 7.50%

D. 11.86%

E. 13.45%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92751646

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