Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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.

  1. 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: _____  %

  2. 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.

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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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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