What were the ytm and the current yield

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Reference no: EM133162018

Question - A company issued new a new series of bonds on Jan 1, 1990. The bonds were sold at par $1,000 had a 12% coupon and mature in 30 years Dec. 31, 2019. Coupon payments are made semi-annually (June 30 and Dec,. 31).

A. What was the price of the bond on Jan 1, 1995 assuming that interest rates have fallen to 10%?

B. Find the current yield, capital gains yield and total return on Jan. 1, 1995 given the price in A

C. On July 1, 2013, the bonds sold for $ 916.42 what were the YTM, the current yield, capital gains yield and total return at that time?

D. Assume that you plan to purchase an outstanding bond on March 1, 2013 when the going rate of interest given its risk was 15.5%. How much must you pay?

Reference no: EM133162018

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