A 10-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,060. The bond sells for $1,100. (Assume that the bond has just been issued.)   What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.   % What is the bond's current yield? Do not round intermediate calculations. Round your answer to two decimal places.   % What is the bond's capital gain or loss yield? Capital loss yield, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places.   % What is the bond's yield to call? Do not round intermediate calculations. Round your answer to two decimal places.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
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Bond Yields and Rates of Return

A 10-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,060. The bond sells for $1,100. (Assume that the bond has just been issued.)

 

  1. What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.

      %

  2. What is the bond's current yield? Do not round intermediate calculations. Round your answer to two decimal places.

      %

  3. What is the bond's capital gain or loss yield? Capital loss yield, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places.

      %

  4. What is the bond's yield to call? Do not round intermediate calculations. Round your answer to two decimal places.

      %

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