Use the following bond quote information reported by FINRA on this Akamai Technology Bond that pays...
Use the following bond quote information reported by FINRA on this Akamai Technology Bond that pays semi-annual coupons to answer questions 11 through 13.
Bond Symbol Coupon Maturity Close Change Akamai Tech AKAM 6.500%
Mar 2040 92.250 -0.413 (Beginning Date is March of 2020)
11. What is the current yield of this bond?
a. 7.24% b. 3.52% c. 6.50% d. 6.84% e. 7.05%
12. What is the yield-to-maturity on this bond?
a. 3.62% b. 7.24% c. 3.58% d. 6.31% e. 6.84%
13. What is the expected capital gain or capital loss over the first year of holding this bond?
a. + 0.19% b. - 0.19% c. - 1.90% d. - 0.95% e. + 0.10%
Homework Answers
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