M eBook One year ago, Henderson Honey issued a 15-year bond for $1,000. The bond's coupon rate of interest is 5 percent, and interest is paid annually. The current value of the bond is $952. a. What are the current yield and capital gains yield Henderson's bondholders earned during the year? Do not round intermediate calculations. Round your answers to one decimal place. Use a minus sign to enter a negative value, if any. Current yield: Capital gains yield: b. What is the bond's yield to maturity today? Do not round intermediate calculations. Round your answer to one decimal place. %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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One year ago, Henderson Honey issued a 15-year bond for $1,000. The bond's coupon rate of interest is 5 percent, and interest is paid annually. The current value of the bond is $952.
a. What are the current yield and capital gains yield Henderson's bondholders earned during the year? Do not round intermediate calculations. Round your answers to one decimal place. Use a minus sign to enter a negative value, if any.
Current yield:
%
Capital gains yield:
b. What is the bond's yield to maturity today? Do not round intermediate calculations. Round your answer to one decimal place.
%
%
Transcribed Image Text:BA eBook One year ago, Henderson Honey issued a 15-year bond for $1,000. The bond's coupon rate of interest is 5 percent, and interest is paid annually. The current value of the bond is $952. a. What are the current yield and capital gains yield Henderson's bondholders earned during the year? Do not round intermediate calculations. Round your answers to one decimal place. Use a minus sign to enter a negative value, if any. Current yield: % Capital gains yield: b. What is the bond's yield to maturity today? Do not round intermediate calculations. Round your answer to one decimal place. % %
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