Explore BrainMass
Share

Finance: Bond valuation.

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

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 March 21, 2019, 10:05 pm ad1c9bdddf
https://brainmass.com/business/bond-valuation/finance-bond-valuation-404194

Solution Preview

The solution is presented in a Word document.

The solution is clear and concise.

Thank you.

BOND VALUATION
a. Calculate the ...

Solution Summary

The problem set deals with calculating the Yield to maturity, total return, current yield, and capital gains yield from selected information.

$2.19