Question: please help me out here. thank you! Consider two 30-year maturity bonds. Bond A has a coupon rate of 4%, while bond B has a


Consider two 30-year maturity bonds. Bond A has a coupon rate of 4%, while bond B has a coupon rate of 12%. Both bonds pay their coupons semiannually. b. Suppose Bond A is currently priced to offer a yield to maturity of 8%. Calculate the (percentage) capital gain or loss on the bond if its yield immediately changes to each value in yield to maturity. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Yield Capital Gain or Loss (Percentage) % % 2% 3% % 4% 5% 6% 7% 8% 9% 10% 11% 12% % % % % % % % 13% % % % % 14% 15% c. Suppose Bond B is currently priced to offer a yield to maturity of 8%. Calculate the (percentage) capital gain or loss on the bond if its yield immediately changes to each value in yield to maturity. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Yield Capital Gain or loss (Percentage) % % % % % 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% % % % % % % % % %
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