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28 Nov 2020
Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 8% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $901.40. The capital gains yield last year was - 9.86%.
a.What is the yield to maturity? Round your answer to two decimal places. %
b.For the coming year, what is the expected current yield? Round your answer to two decimal places. %
c. For the coming year, what is the expected capital gains yield? Round your answer to two decimal places. %
Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 8% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $901.40. The capital gains yield last year was - 9.86%.
a.What is the yield to maturity? Round your answer to two decimal places. %
b.For the coming year, what is the expected current yield? Round your answer to two decimal places. %
c. For the coming year, what is the expected capital gains yield? Round your answer to two decimal places. %
Vaishali YadavLv10
4 Feb 2021