Bond's capital gain yield, Financial Management

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A 10-year, 12% semi-yearly coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,050. The bond sells for $1,050. (Suppose that the bond has just been issued.)

a.            What is the bond's yield to maturity?

b.            What is the bond's present yield?

c.             What is the bond's capital gain/loss yield?

d.            What is the bond's yield to call?

 


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