11. A bond has a face value of $1,000 with a 9% annual coupon. Assuming the...

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11. A bond has a face value of $1,000 with a 9% annual coupon. Assuming the yield to maturity (YTM) remains at 6.75% for all

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Answer 1

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Years to Maturity Price of Bond Current Yield lCapital gain/(loss) vield 1.37% 1.45% -1.61% 1 2 6 $1,108.08 5 $1,092.88 4$1,0

Current Yield -PV(6.75%,6,90, 1000)-11-90/1108.08 -PV(6.75%,5,90, 1000)-1-90/1092.88 PV(6.75%,4,90,1000)-11:90/1076.64 Cap

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