Question: Correct ans: a- 1,393.80, b- 3.59, c--0.59%, d- 1,368.31, e-3.65%, f- -0.65% A bond has coupon rate 5%, YTM 3%, face value of $1000, and

Correct ans: a- 1,393.80, b- 3.59, c--0.59%, d- 1,368.31, e-3.65%, f-

Correct ans:

a- 1,393.80, b- 3.59, c--0.59%, d- 1,368.31, e-3.65%, f- -0.65%

A bond has coupon rate 5%, YTM 3%, face value of $1000, and matures in 30 years. The interest payments are made semiannually. What is the value of the bond today? $861.62 What is the current yield this year? 1.79% What is the capital gains yield this year? 3% What is bond value in 3 years? $1,368.31 What is current yield in 3 years? 4.96% What is capital gains yield in 3 years?-2.77%

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