A)
A bond offers a coupon rate of 12%, paid annually, and has a
maturity of 16 years. The current market yield is 14%. Face value
is $1,000. If market conditions remain unchanged, what should be
the Capital Gains Yield of the bond?
B)
You own a bond with the following features: face value of $1000,
coupon rate of 5% (semiannual compounding), and 15 years to
maturity. The bond has a current price of $1,115. The bond is
callable after...