Business Finance Homework Help
Business Finance Homework Help. Bond Yields and Rates of Return (Problem 5 – 12)
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.)
a. What is the bond’s yield to maturity?
b. What is the bond’s current yield?
c. What is the bond’s capital gain or loss yield?
d. What is the bond’s yield to call?
Here are the answers, I need to see how problem is solved. A. 10.37% B. 10.91% C. -0.54% D. 10.15%
Business Finance Homework Help
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