What would be your capital gain or loss expressed as an ear

Reference no: EM132182210

Question - Great Plains Corporation issued a 15-year 10% bond exactly eight years ago.

(a) If you bought $1000 of this bond exactly two years ago when the yield-to-maturity was 10%, how much did you pay?

(b) If the yield-to-maturity is 8.05% now, and the next coupon is in exactly six months, what is the value of the bond today?

(d) If in three years from now the bond price is $923, what would be the yield-to-maturity at that point, expressed as an APR with semi-annual compounding? To solve this you can use Excel IRR or goal seek function or a financial calculator etc.

Reference no: EM132182210

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