Problem ONE: A company issued 30-year bonds AT PAR with a 6.50% coupon paid annually....
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Problem ONE: A company issued 30-year bonds AT PAR with a 6.50% coupon paid annually. After 5 years market interest rates remained unchanged CY= YTM= CGY= current yield, capital gains yield & YTM? What is the bond's After another 3 years the bond's price is $924 CY= YTM= What is the bond's current yield & YTM? After another 6 years the bond's price is $1175 What is the bond's CY= YTM= CGY= current yield, capital gains yield & YTM? After another 2 years the bond is priced with a YTM of 8 percent (YTM) PRICE CY= What is the bond's PRICE & current yield
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