subject
Business, 30.10.2019 22:31 mmcdaniels46867

Current yield, capital gains yield, and yield to maturityhooper printing inc. has bonds outstanding with 19 years left to maturity. the bonds have an 7% 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 $890.20. the capital gains yield last year was - 10.98%.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? (hint: refer to footnote 7 for the definition of the current yield and to table 7.1.) round your answer to two decimal places. %c. for the coming year, what is the expected capital gains yield? (hint: refer to footnote 7 for the definition of the current yield and to table 7.1.) round your answer to two decimal places. %will the actual realized yields be equal to the expected yields if interest rates change? if not, how will they differ? a. as long as promised coupon payments are made, the current yield will change as a result of changing interest rates. however, changing rates will cause the price to change and as a result, the realized return to investors should equal the ytm. b. as long as promised coupon payments are made, the current yield will change as a result of changing interest rates. however, changing rates will not cause the price to change and as a result, the realized return to investors should equal the ytm. c. as rates change they will cause the end-of-year price to change and thus the realized capital gains yield to change. as a result, the realized return to investors will differ from the ytm. d. as long as promised coupon payments are made, the current yield will change as a result of changing interest rates. however, changing rates will cause the price to change and as a result, the realized return to investors will differ from the ytm. e. as long as promised coupon payments are made, the current yield will not change as a result of changing interest rates. however, changing rates will cause the price to change and as a result, the realized return to investors should equal the ytm.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 05:00
The new york stock exchange is an example of what type of stock market?
Answers: 1
question
Business, 23.06.2019 00:50
Mr. drucker uses a periodic review system to manage the inventory in his dry goods store. he likes to maintain 15 sacks of sugar on his shelves based on the annual demand figure of 225 sacks. it costs $2 to place an order for sugar and costs $1 to hold a sack in inventory for a year. mr. drucker checks inventory one day and notes that he is down to 9 sacks; how much should he order?
Answers: 1
question
Business, 23.06.2019 11:00
Stacy is preparing a product presentation with customer, marketing, and technical content. she will first present it to an engineering audience mainly interested in technical product details. what should she do? select the best option. hide the marketing content slides for the engineering audience. save a new version and delete unwanted slides for this audience. cut and paste all the unwanted slides to the end. create a custom slide show for multiple audiences.
Answers: 3
question
Business, 23.06.2019 12:20
Gross output (go) reflects the overall status of the productive side of the economy better than gdp does. a. true b. false
Answers: 2
You know the right answer?
Current yield, capital gains yield, and yield to maturityhooper printing inc. has bonds outstanding...
Questions
question
Mathematics, 04.08.2019 18:10
Questions on the website: 13722363