You are given the following partial quote from a newspaper dated November 3, 2022. Assume the bond

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You are given the following partial quote from a newspaper dated November 3, 2022. Assume the bond has a face value of $1,000 and pays interest semi-annually.

Company(TICKER) XYZ (XYZ)

COUPON-MATURITY LAST 6.00%

PRICE $1,114.00

What is the yield to maturity on this bond? Is this bond a premium bond or discount bond?

What is the current yield on this bond assuming that you buy the bond at Nov 3, 2022 hold it for one year? What is the capital gain yield?

Related Book For answer-question

Basic Finance An Introduction to Financial Institutions Investments and Management

ISBN: 978-1111820633

10th edition

Authors: Herbert B. Mayo

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Posted Date: May 03, 2023 07:13 AM

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You are given the following partial quote from a newspaper dated November 3, 2022. Assume the bond

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Solution The semi annual coupon payment 6 X its The bond is priced at 1114 The ... View the full answer

Basic Finance An Introduction to Financial Institutions Investments and Management

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