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Use this information to answer the following questions An outstanding 30 year corporate bond for a...

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Finance

Use this information to answer the following questions

An outstanding 30 year corporate bond for a U.S. company has 14years left to maturity and has a coupon rate of 4.0%. The bond iscurrently selling for $980.

1) What is the yield to maturity?

2) What is the current yield?

3) What is the capital gains yield?

Answer & Explanation Solved by verified expert
3.8 Ratings (439 Votes)
Information provided Face value future value 1000 Coupon rate 4 Coupon payment 0041000 40 Time 14 years Current pricepresent value 980    See Answer
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Use this information to answer the following questionsAn outstanding 30 year corporate bond for a U.S. company has 14years left to maturity and has a coupon rate of 4.0%. The bond iscurrently selling for $980.1) What is the yield to maturity?2) What is the current yield?3) What is the capital gains yield?

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