What is the bonds current yield and capital gain yields

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1. Analyze the 10-yr, 8% coupon rate (semiannual payment), 1000 par value bond. The bond currently sells for $1318. What is the bonds current yield, and capital gain yields?

2. Which one of the following bonds is the most interest rate sensitive? 1. 10-yr-5% coupon rate bond 2. 10-yr-2% coupon rate bond 3. 5 yr -5% coupon rate bond 4. 5 yr - 2% coupon rate bond.

3. A 9 year bond with a YTM of 12% sells for Par. If you buy the bond today and then sell it next year at a YTM of 5%, what is your rate of return on this investment? Answer to 4 decimal places, for example 0.1745.

Reference no: EM131851670

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