Question: Please help me answer this 4 step question A.) You own a bond with the following features: face value of $1000, coupon rate of 5%
Please help me answer this 4 step question
A.) You own a bond with the following features: face value of $1000, coupon rate of 5% (semiannual compounding), and 15 years to maturity. The bond has a current price of $1,115. The bond is callable after 5 years with the call price of $1,050 (i.e.: the call premium is $50). What is the yield to call if the bond is called at 5 years (state as an APR)?
B.) A bond offers a coupon rate of 15%, paid annually, and has a maturity of 19 years. The current market yield is 4%. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?
C.) A bond offers a coupon rate of 13%, paid semiannually, and has a maturity of 19 years. Face value is $1,000. If the current market yield is 5%, what should be the price of this bond?
D.) As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 11 years, the coupon rate is 9% paid annually, and the discount rate is 4%.
What is this bond's coupon payment?
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