What is each bonds expected capital gains yield today

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Use the following corporate bond quote information to answer the questions that follows. since this is a corporate bond, assume the company makes semi-annual coupon payments and also assume the bond matures on today's date in its maturity year. Bond Cur.Yld. Vol. close Net Chg. Doh! 9 1/2 18 9.0 5 105 1/2 -1/4 Doh! 8 1/2 21 9.4 10 90 1/4 -1/2 1.how much would each bond cost you yesterday if its face value were $1000? 3. what is each bond's yield to maturity? 4. what is each bond's expected capital gains yield today? 5. now imagine you purchased each bond today at the current price. a year later the yield to maturity for each bond falls by one percentage point. what is your total rate of return for each bond? 6.now imagine same scenario in #5 except the yield to maturity for each bond increases one percentage point for each bond a year later. what is your total rate of return for each bond? 7. which bond do you prefer in #5 and what type of risk are you more exposed to if you choose this particular bond? 8. which bond do you prefer in #6 and what type of risk are you more exposed to if you choose this particular bond?

Reference no: EM131314672

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