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Part A:

A $1,000 par value bond matures in four years and pays interest semi-annually. It is currently selling for 1,137.93 and has a coupon rate of 5.5%. What is the bond's current yield? (show your answer as a decimal to four places)

Part B:

A $1,000 par value zero-coupon bond with 6 years to maturity has a yield to maturity of 7.6. What is the bond's current price? (Show your answer to two decimals, e.g., 912.34)

Part C:

What is the CAPITAL GAINS YIELD of a $1,000 par value bond that matures in 19 years and pays interest of $41 every six months if the yield to maturity is 5.5 percent. (Show your answer as a decimal to four places)

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92305939

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