One year ago, Henderson Honey issued a 10-year bond for $1,000. The bond's coupon rate of interest is 6 percent, and interest is paid annually. The current value of the bond is $941. 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: _____ % What is the bond's yield to maturity today? Do not round intermediate calculations. Round your answer to one decimal place. _____ %
One year ago, Henderson Honey issued a 10-year bond for $1,000. The bond's coupon rate of interest is 6 percent, and interest is paid annually. The current value of the bond is $941. 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: _____ % 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
Section: Chapter Questions
Problem 1PS
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Question
One year ago, Henderson Honey issued a 10-year bond for $1,000. The bond's coupon rate of interest is 6 percent, and interest is paid annually. The current
-
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: _____ %
-
What is the bond's yield to maturity today? Do not round intermediate calculations. Round your answer to one decimal place.
_____ %
Transcribed Image Text:One year ago, Henderson Honey issued a 10-year bond for $1,000. The bond's coupon rate of interest is 6 percent, and interest is paid annually. The
current value of the bond is $941.
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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