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Bond Yields and Rates of Return A 30-year, 10% semiannual coupon bond with a par value...

Bond Yields and Rates of Return

A 30-year, 10% semiannual 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 $1,050. (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.

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  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.

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  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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jeff jeffy answered 2 years ago
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