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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).

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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).

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