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  1. business
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  3. you hold two bonds. you own a $1,000 face value bo

You hold two bonds. You own a $1,000 face value bond from Company B that...

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Accounting

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You hold two bonds. You own a $1,000 face value bond from Company B that has 4.8% coupons paid once per year, and thirteen years to maturity. The other is a $1,000 face value bond from A Corporation that has 8.8% coupons paid once per year, and thirteen years to maturity. The market (YTM) for both bonds is 6.8%. a. What is the current yield for Bond A ? For Bond B? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 12.34.) b. If the YTM remains unchanged. What is the expected Capital Gains Yield over the next year for Bond A? For Bond B? Mint you will need to solve the price of each bond next year to find the capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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