In: Finance
1.Use the bond term's below to answer the question
Maturity 6 years
Coupon Rate 4%
Face...
1.Use the bond term's below to answer the question
Maturity 6 years
Coupon Rate 4%
Face value $1,000
Annual Coupons
Market Interest Rate 6%
Assuming the YTM remains constant throughout the bond's life, what
is percentage capital gains/loss between periods 2 and 3 ?
2.
Use the bond term's below to answer the question
Maturity 5 years
Coupon Rate 4%
Face value $1,000
Annual Coupons
Market Interest Rate 6%
Assuming the YTM remains constant throughout the bond's life, what
is the bond's price in period 2 ?
3.
Use the bond term's below to answer the question
Maturity 4 years
Coupon Rate 5%
Face value $1,000
Annual Coupons
YTM 7%
Assuming the YTM remains constant throughout the bond's life, what
is the bond's current yield between periods 3 and 4 ?
4.
Use the bond term's below to answer the question
Maturity 7 years
Coupon Rate 5%
Face value $1,000
Annual Coupons
Market Interest Rate 3%
Assuming the YTM remains constant throughout the bond's life, what
is percentage capital gains/loss between periods 6 and 7 ?