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What is the capital gain yield on the bonds

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1. Wee Beastie Animal Farm bonds have 9 years to maturity and pay an annual coupon at the rate of 5.6%. The face value of the bonds is $1,000. The price of the bonds is $1,061.09 to yield 4.75%. What is the capital gain yield on the bonds? The capital gain yield is: (Select the best choice below.)

A. negative 0.56

B. plus 0.62 %

C. plus 0.43 %

D. negative 0.63 %

E. negative 0.53 %

2. What is the yield to maturity of a 9.2% semiannual coupon bond with a face value of? $1,000 selling for $868.03 that matures in 10 years? The annual yield to maturity of the bond is:  (Select the best choice below.)

A. 11.45 %

B. 9.618 %

C. 11.679 %

D. 10.191 %

E. 11.794 %

Reference no: EM131838245

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