A 20-year, 8 % semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,000. (Assume that the bond has just been issued.) Complete the attached spreadsheet, answering the following:
a) What is the bonds yield to maturity?
b) What is the bond's current yield?
c) What is the bond's capital gain or loss yield?
d) What is the bond's yield to call?

Please see the attachment. I have done my best to answer your question to the best of my ability. I ...

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Three years ago (Apr '07) you invested in a mortgage backed bond originally issued in Apr 2000. When it was issued (in 2000), it was sold as a 20-year bond at par with an 8% coupon, and semiannual payments.
a) In Apr. 07 (when you bought it), the yield to maturity on this bond was 6%. What was its value at that time ('07)?

Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities:
Bond Coupon (%) Price (%)
2 81.62
4 98.39
8 133.42
________________________________________
a. What is the yield to maturity fo

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 gainsyield for the DISCOUNT bond (i.e. $921.11)? (Assume the bond is h

1) Last year Clark company issued a 10-year ,12 % semiannual coupon bond at its par value of $1000. The bond can be called in 4 yrs at a price of $1,060, and it now sells for $1100.
a. What are the bond's yield to maturity and its yield to call? Would an investor be more likely to actually earn the YTM or the YTC?
b What i

Which of the following statements is the most correct and why?
A.If a bond sells for less than par, then its yield to maturity is less than its coupon rate.
B. If a bonds sell at par, then its current yield will be less than yield to maturity.
C. Assuming that both are held to maturity and are equal risk, a bond selling

At what point would an investor be indifferent between a corporate bondyielding 10.8 percent and a tax-free municipal bond of equal financial strength if the investor's marginal tax rate is 25 percent? (i.e. what would the yield be on the muni bond at the point where the investor is indifferent between the muni and the coopera

Please calculate the attached problems and show all work:
1. Bond PV 1a
A coupon bond promises annual interest payments based on a face value of $1,000 and a 9.00% coupon rate. The bond matures in 22 years. If the appropriate discount rate is 7.85%, what is the value of the bond?
2. Bond YTM 1a
A coupon bond with annual

A bond has the following terms:
Annual interest $100
Term 15 years
Principal $1,000
a. What is the current price of the bond if comparable yields are 7 percent?
b. What are the current yieldandyield to maturity given the price of the bond in the previous question?
c. If you expect the b

ABC Industries bond has a 10 percent coupon rate and a $1000 face value. Interest is paid semiannually, and the bond has 20 years to maturity. If investors require a 12 percent yield, what is the bond's value? What is the effective annual yield on the bond?
XYZ corp. bond carries an 8 percent coupon, paid semiannually. The pa

A bond has 16 years until maturity, a coupon rate of 5.8%, and sells for $1,109.
a. What is the current yield on the bond? (Round your answer to 2 decimal places.)
Current yield %
b. What is the yield to maturity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Yield to mat