Compute the capital gains yield and current yield

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Reference no: EM133496012

1. A 4.19% coupon, 10.0 -year annual bond has a yield to maturity of 7.75%. Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following:

Price of the bond today:

Price of the bond in one year:

Capital gains yield

Current Yield

2. Suppose you invest $22,144.00 today in an account that earns 14.04% interest annually. How much money will be in your account 23.0 years from today?

3. What is the value today of single payment of $69,087.00, 9.0 years from today if the value is discounted at a rate of 23.23%?

4. How many years would it take an investment of $614.00 to grow to $14,180.00 at an annual rate of return of 19.77%?

Reference no: EM133496012

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