Question: 1 . You are considering to buy a 9 % semi - annual callable bond with 3 0 - year until maturity and Face Value
You are considering to buy a semiannual callable bond with year until maturity and Face Value$ The call date is in years and the call price is $ points
a Calculate the current yield if the price is point
b Calculate the YTM if bond price today is points
c Calculate the yieldtocall point
d Calculate the yield to worst point
e You are planning to hold this bond for years from today. Hence, your investment period is years. Calculate the bond price years from today when YTM which you will sell the bond at this price. points
f What is future value of coupons at year if you assume that the annual reinvestment rate points
gWhat is the percentage total return? points
hWhat is the total dollar return at h end of year point
i What is the interest on interest at the end of years? points
j What percentage of total dollar return is interest on interest? point
k What percentage of total dollar return is capital gain? point
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