A 20 year, at 10% semiannual coupon bond, with a par value of $1000 sells for $1200 (assume that the bond has just been issued today). What is the bond yield to maturity? what is the bond's current yield? what does the bonds capital gain or loss yield if the bond is purchased today and sold next year?b

Q: 1. A 12-year bond has a 9 percent annual coupon, a yield to maturity of 8 percent, and a face value…

A: 1) Face value (F) = P 1000 r = YTM = 8% n = 12 years Coupon (C) = 9% of 1000 = P 90

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