What was the YTM on January

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Question - The Washington Corporation issued a new series of bonds on January 1, 2005. The bonds were sold at par (1,000); had a 12% coupon; and mature in 30 years, on December 31, 2034. Coupon payments are made semi-annually (on June 30 and December 31).

a) What was the YTM on January 1, 2005?

b) What was the price of the bonds on January 1, 2010, 5 years later, assuming that interest rates had fallen to 10%?

c) Find the current yield, capital gains yield, and total return on January 1, 2010, given the price as determined in Part b.

Reference no: EM133055596

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