Question: Please show calculation step without using excel four years ago, S . Goodan Corp. issued a bond with a 1 4 % coupon rate, semi
Please show calculation step without using excel
four years ago, S Goodan Corp. issued a bond with a coupon rate, semiannual coupon payments, $
face value, and years until maturity.
a You bought this bond three years ago right after the bond made its coupon payment when the yieldtomaturity was How much did you pay for the bond?
b Suppose todays yieldtomaturity of the bond is and the next coupon payment is exactly in months from
today. If you sell the bond today, after you have owned it for three years, what would be your capital gainloss
yield? Remember, the capital gainloss yield is the return resulting from price changes of your investment.
c Suppose two years from now right after the bond made its coupon payment the bond has a value of $
What would be the yieldtomaturity of the bond APR semiannually compounded Use Excel or a financial
calculator to solve this question.
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