Calculate intrinsic value and capital gains yield

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Reference no: EM133617020

Problem: Consider a $5,000 par value 15-year 9% coupon BB-rated bond that pays out coupon payments monthly. The bond is now being priced to generate an annual YTM of 10.8%. Calculate the intrinsic value (or price), current yield and capital gains yield of this discount/par/premium (circle one) bond.

Reference no: EM133617020

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