What is the bond''s capital gain or loss yield

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Reference no: EM131535638

1) A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $1,050. (Assume that the bond has just been issued.)

What is the bond's yield to maturity? Do not round your intermediate calculations. Round your answer to two decimal places.

What is the bond's current yield? Do not round your intermediate calculations. Round your answer to two decimal places.

What is the bond's capital gain or loss yield? Loss should be indicated with minus sign. Do not round your intermediate calculations. Round your answer to two decimal places.

What is the bond's yield to call? Do not round your intermediate calculations. Round your answer to two decimal places.

2) The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%.

What is the yield to maturity at a current market price of $860? Round your answer to two decimal places.

Reference no: EM131535638

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