Question: A 4 . 5 9 % coupon, 2 1 . 0 - year annual bond has a yield to maturity of 6 . 9 3

A 4.59% coupon, 21.0-year annual bond has a yield to maturity of 6.93%. Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following:
a. Price of the bond today:
b. Price of the bond in one year:
c. Capital gains yield (please answer as a percentage with 2 decimal places):
d. Current Yield (please answer as a percentage with 2 decimal places):

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a Current bond price The yieldtomaturity YTM formula can be used to determine the bonds current price The formula using the supplied values is as foll... View full answer

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