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Calculate the yield to maturity, current yield, and capital gains yield for a 12% coupon bond, with semi-annual coupons, face
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Answer #1

Semi annual Coupon =12%*1000/2 =60
Number of Periods =15*2 =30
Price =1110
FV =1000

YTM using financial calculator
N=30;PMT=60;PV=-1110;FV=1000;CPT I/Y =5.325%
YTM =2*5.325% =10.65%

Current Yield =Coupon/Price =120/1110 =10.81%

Capital gain =10.65%-10.81% =-0.16%

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