Question: 1.Use the bond term's below to answer the question Maturity 6 years Coupon Rate 4% Face value $1,000 Annual Coupons Market Interest Rate 6% Assuming
1.Use the bond term's below to answer the question Maturity 6 years Coupon Rate 4% Face value $1,000 Annual Coupons Market Interest Rate 6% Assuming the YTM remains constant throughout the bond's life, what is percentage capital gains/loss between periods 2 and 3 ?
| 1.70% |
| 1.75% |
| 1.79% |
| 1.64% |
2.
Use the bond term's below to answer the question Maturity 5 years Coupon Rate 4% Face value $1,000 Annual Coupons Market Interest Rate 6% Assuming the YTM remains constant throughout the bond's life, what is the bond's price in period 2 ?
| $901.47 |
| $965.47 |
| $946.54 |
3.
Use the bond term's below to answer the question Maturity 4 years Coupon Rate 5% Face value $1,000 Annual Coupons YTM 7% Assuming the YTM remains constant throughout the bond's life, what is the bond's current yield between periods 3 and 4 ?
| 5.00% |
| 4.85% |
| 5.10% |
4.
Use the bond term's below to answer the question Maturity 7 years Coupon Rate 5% Face value $1,000 Annual Coupons Market Interest Rate 3% Assuming the YTM remains constant throughout the bond's life, what is percentage capital gains/loss between periods 6 and 7 ?
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