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Bond Yields and Rates of Return

A 25-year, 8% semi annual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $950. (Assume that the bond has just been issued.)

What is the bond's yield to maturity? Round your answer to two decimal places.

%

What is the bond's current yield? Round your answer to two decimal places.

%

What is the bond's capital gain or loss yield? Loss should be indicated with minus sign. Round your answer to two decimal places.

%

What is the bond's yield to call? Round your answer to two decimal places.

%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91549058

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