What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond...

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Finance

  1. What is the yield to maturity on a 10-year, 9% annual coupon,$1,000 par value bond that sells for $887.00? That sells for$1,134.20? What does the fact that a bond sells at a discount or ata premium tell you about the relationship between and the bond’scoupon rate?
  2. What are the total return, the current yield, and the capitalgains yield for the discount bond? (Assume the bond is held tomaturity and the company does not default on the bond.)

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Discount bond The YTM is calculated using the RATE function in Excel with these inputs nper 10 number of coupon payments number of years to maturity pmt 1000 9 annual coupon payment this is entered as a positive number as it is a cash inflow to the bondholder pv 887 the current price of the bond this is    See Answer
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What is the yield to maturity on a 10-year, 9% annual coupon,$1,000 par value bond that sells for $887.00? That sells for$1,134.20? What does the fact that a bond sells at a discount or ata premium tell you about the relationship between and the bond’scoupon rate?What are the total return, the current yield, and the capitalgains yield for the discount bond? (Assume the bond is held tomaturity and the company does not default on the bond.)

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