A $15-$year, $14\%$ semiannual coupon bond with a par value of $$1,000$ may be called in $4$ years at a call price of $$1,075.$ The bond sells for $$1,050.($Assume that the bond has just been issued.$)$ 

a. What is the bond's capital gain or loss yield? Capital loss yield, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places.

b.  $$What is the bond's yield to call? Do not round intermediate calculations. Round your answer to two decimal places.

 

 

 

 

   $$ 

 

Answer rating: 100% (QA)

Given Information Face Value FV of the bond 1000 Coupon Rate 14 semiannual coupons Time to call the ... View the full answer