A 4.59% coupon, 21.0 -year annual bond has a yield to maturity of 6.93% . Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following: Price of the bond today: Price of the bond in one year: Capital gains yield (please answer as a percentage with 2 decimal places): Current Yield ( please answer as a percentage with 2 decimal places):
A 4.59% coupon, 21.0 -year annual bond has a yield to maturity of 6.93% . Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following: Price of the bond today: Price of the bond in one year: Capital gains yield (please answer as a percentage with 2 decimal places): Current Yield ( please answer as a percentage with 2 decimal places):
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![A 4.59% coupon, 21.0 -year
annual bond has a yield to
maturity of 6.93% . Assuming
the par value is 1,000 and the
YTM does not change over the
next year, Compute the
following: Price of the bond
today: Price of the bond in one
year: Capital gains yield (please
answer as a percentage with 2
decimal places): Current Yield (
please answer as a percentage
with 2 decimal places):](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b9b32d3-3c60-435f-984a-e5eafbc05b11%2F5dfe9c09-48df-4fc5-8487-0d413488b6fe%2Fr107mt9_processed.png&w=3840&q=75)
Transcribed Image Text:A 4.59% coupon, 21.0 -year
annual bond has a yield to
maturity of 6.93% . Assuming
the par value is 1,000 and the
YTM does not change over the
next year, Compute the
following: Price of the bond
today: Price of the bond in one
year: Capital gains yield (please
answer as a percentage with 2
decimal places): Current Yield (
please answer as a percentage
with 2 decimal places):
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