# Price a bond with a 4 1/2 coupon rate and 20 years to maturity. The yield to

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## Question:

a. Calculate the bond price.

b. Compute the bond's current yield.

c. Compute the bond price one year later and the capital gains rated. Show the relationship between the current yield, the capital gains rate, and the yield to maturity.

**Related Book For**

## Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen