Current yield and capital gains yield

Assignment Help Macroeconomics

Reference no: EM131502915

Bond P is a premium Bond with a coupon rate of 8.7 percent. Bond D is a discount Bond with a coupon rate of 4.7 percent. Both Bonds make annual payments, have a YTM of 6.7 percent, a par value of $1,000, and have twelve years to maturity.

What is the current yield for Bond P? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Current yield %

What is the current yield for Bond D? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Current yield %

If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Capital gains yield %

If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond D? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Capital gains yield %

Reference no: EM131502915

Questions Cloud

What is sustainable growth rate : What is the sustainable growth rate? What is the sustainable growth rate?

Calculate the diluted earnings per share : Calculate ABC company Earning per share. Calculate the shares have been purchased with the proceeds from the options

Statements is true about market value ratios : Which of the following statements is true about market value ratios? Can a company's hsare exhibit a negative P/E ratios?

Company decides to invest in the opportunity : Which two statements could be said of this project if the company decides to invest in the opportunity?

Current yield and capital gains yield : If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond D?

How much cash flow would hospital generate from this sale : How much cash flow would the hospital generate from this sale?

Firm might experience due to a cyber-attack : Describe the types of loss that a firm might experience due to a cyber-attack.

Earners manage risk of loss of income due to disability : What programs and products are available to help income earners manage the risk of loss of income due to disability?

What is the dollar amount of interest : In the final compounding interval, what is the dollar amount of interest that is earned from earlier interest?

User Account

All Pages