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A bond has 6 years to maturity, a coupon rate of 13.8 and a face value of $1,000.The yield to maturity is 6.9 %. Assume annual compounding. What is the current price of the bond, the coupon yield, and the capital gain yield Also, what will be the price of the bond when it has 5 years to maturity? (one year from? today) and what is the percentage increase/decrease in price during the year? (Note: use negative signs to indicate decreases and assume that the yield to maturity will remain constant over the one-year period.)

The price of the bond is ?(Round to the nearest cent.)

The coupon yield of the bond is ? (Round to four decimal places.)

The capital gain yield is ? (Round to four decimal places.)

The price of the bond one year later is ?(Round to the nearest cent.)

The percentage change in price is (Round to four decimal places.)

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92081810

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