Divide the gain or loss by the number of years to maturity, Ask an Expert

Economics

A corporate bond that has a coupon rate of 6 percent matures in 5 years. Its price is currently $115 (per $100 face amount). a. Calculate the current yield on this bond. b. If this bond is held to maturity, will its holder realize a gain or loss at maturity? How much will the gain or los be? Divide the gain or loss by the number of years to maturity to calculate the average annual gain/loss. c. Calculate the yield to maturity on this bond.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9439733

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