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Bond Fundamentals and Valuation Bond valuation and Yield Measures Assume the following information for five different types of bonds: Zero Coupon Bond Coupon Perpetual

 

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Bond Fundamentals and Valuation Bond valuation and Yield Measures Assume the following information for five different types of bonds: Zero Coupon Bond Coupon Perpetual Bond Bond Conventional Callable Puttable Face value at maturity ($) 30,000 100 1,000 1,000 1,000 Term to maturity (years) 20 10 10 10 Coupon rate (coupon paid annually) (%) 10% 13% 13% 13% Current bond price ($) 6,200 80 900 900 900 Callable after 3 years at 6% premium ($) Puttable after 3 years at 6% discount ($) a) Calculate Current Yield for each type of bond. b) Calculate Yield to Maturity for each type of bond. c) Calculate Yield to Call and Yield to Put for the Coupon Bonds. 1060 940

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