One year ago, Henderson Honey issued a 10-year bond for $1,000. The bond's coupon rate of interest is 6 percent, and interest is paid annually. The current value of the bond is $941. What are the current yield and capital gains yield Henderson's bondholders earned during the year? Do not round intermediate calculations. Round your answers to one decimal place. Use a minus sign to enter a negative value, if any. Current yield: _____ % Capital gains yield: _____ % What is the bond's yield to maturity today? Do not round intermediate calculations. Round your answer to one decimal place. _____ %

One year ago, Henderson Honey issued a 10-year bond for $1,000. The bond's coupon rate of interest is 6 percent, and interest is paid annually. The current value of the bond is $941. What are the current yield and capital gains yield Henderson's bondholders earned during the year? Do not round intermediate calculations. Round your answers to one decimal place. Use a minus sign to enter a negative value, if any. Current yield: ___ % Capital gains yield: _ % What is the bond's yield to maturity today? Do not round intermediate calculations. Round your answer to one decimal place. ___ %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 16P

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