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    Bond Valuation

    a. Calculate the Yield-to-Maturity on a 8 year, 9 percent semi-annual coupon, $1,000 par value bond that sells for $921.11 What is the YTM if that bond now sells for $1,157.67?

    b. What is the total return, the current yield, and capital gains yield for the DISCOUNT bond (i.e. $921.11)? (Assume the bond is held to maturity and the company does not default on the bond).

    © BrainMass Inc. brainmass.com December 24, 2021, 9:41 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/finance-bond-valuation-404194

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    BOND VALUATION
    a. Calculate the Yield-to-Maturity on an 8 year, 9 percent semi-annual coupon, $1,000 par value bond that sells for $921.11. What is the YTM if that bond now sells for $1,157.67?
    NOTE: Double click the table to see the formulas used.

    b. What is the total return, the current yield, and capital gains yield for the DISCOUNT bond (i.e. $921.11)? (Assume the bond is held to maturity and the company does not default on the bond).

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 9:41 pm ad1c9bdddf>
    https://brainmass.com/business/bond-valuation/finance-bond-valuation-404194

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