Bond nominal yield to maturity


One year ago Clark Company issued a 8-year, 8% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 5 years at a price of $951, and it now sells for $887.66.

a. What is the bond's nominal yield to maturity? Round your answer to two decimal places.

b. What is the bond's nominal yield to call? Round your answer to two decimal places.

c. What is the current yield?

d. What is the expected capital gains (or loss) yield for the coming year? Round your answer to two decimal places

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Finance Basics: Bond nominal yield to maturity
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