Question: Bond Valuations over Time (use REMAINING TIME TO MATURITY for N as the bond moves CLOSER to Maturity) CALCULATE: YTM Current Yield Capital Gains Yield

Bond Valuations over Time (use REMAINING TIME TO MATURITY for N as the bond moves CLOSER to Maturity)

CALCULATE:

YTM

Current Yield

Capital Gains Yield

BOND Price.

A company issued 25-year bonds AT PAR with a 4.75% coupon paid annually. After 4 years market interest rates remained unchanged

CY=______________ YTM=______________ CGY= ______________ What is the bonds current yield, capital gains yield & YTM? After another 9 years the bonds price is $995 CY=______________ YTM=______________ CGY = ______________ What is the bonds current yield, capital gains yield & YTM? After another 6 years the bonds price is $1125 CY=______________ YTM=______________ CGY= ______________ What is the bonds current yield, capital gains yield & YTM? After another 2 years the bond is priced with a YTM of 6 percent (YTM) PRICE= ___________ CY= ____________ What is the bonds PRICE & current yield?

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