A 5.22% coupon, 17.0 -year annual bond has a yield to maturity of 6.46%. Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following: 

2. a. Price of the bond today:
4. b. Price of the bond in one year:
6. c. Capital gains yield ( answer as a percentage with 2 decimal places):
8. d. Current Yield ( answer as a percentage with 2 decimal places):

Answer rating: 100% (QA)

To compute the requested values we can use the following formulas a Price of the bond today The pric... View the full answer