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# current yield

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A 3yr bond, annual coupon 3.5%, yield 3.8%, last coupon payment just made. Calculate its price and current yield?

https://brainmass.com/economics/bonds/bond-calcuations-current-yield-30138

#### Solution Summary

The solution calculates the price and current yield.

\$2.19
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## Callaghan Motors' bonds have 10 years remaining to maturity.

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7-1 Bond valuation Callaghan Motors' bonds have 10 years remaining to maturity. Interest is paid annually; they have a \$1,000 par value; the coupon interest rate is 8 percent; and the yield to maturity is 9 percent. What is the bond's current market price?

7-2 Current yield and yield to maturity A bond has a \$1,000 par value, 10 years to maturity,
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b. What is its yield to maturity (YTM)?
c. Assume that the yield to maturity remains constant for the next 3 years. What willthe price be 3 years from today?

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7-10 Current yield, capital gains yield, and yield to maturity Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 8 percent annual coupon rate and were issued 1 year ago at their par value of \$1,000, but due to changes in interest rates, the bond's market price has fallen to \$901.40. The capital gains yield last year was _9.86 percent.
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b. For the coming year, what is the expected current yield and the expected capital gains yield?
c. Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ?

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