Bond yields One year ago Clark Company issued a 8-year, 8% semiannual coupon bon
ID: 2638603 • Letter: B
Question
Bond yields
One year ago Clark Company issued a 8-year, 8% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 4 years at a price of $939, and it now sells for $889.48.
What is the bond's nominal yield to maturity? Round your answer to two decimal places.
What is the bond's nominal yield to call? Round your answer to two decimal places.
What is the current yield?
What is the expected capital gain or loss yield for the coming year?
Yield to call
It is now January 1, 2012, and you are considering the purchase of an outstanding bond that was issued on January 1, 2010. It has a 8.5% annual coupon and had a 30-year original maturity. (It matures on December 31, 2039.) There is 5 years of call protection (until December 31, 2014), after which time it can be called at 109-that is, at 109% of par, or $1,090. Interest rates have declined since it was issued; and it is now selling at 116.575% of par, or $1,165.75.
What is the yield to maturity? Round your answer to two decimal places.
What is the yield to call? Round your answer to two decimal places..
Explanation / Answer
http://www.zenwealth.com/businessfinanceonline/BV/YTC.html
The mentioned website is a link for yield to call calculator. With the help of example solution given in the website, provide the input of current solution in the calculator to get exact result.