Cynthia Phelps is a recent retiree who is interesed in investing some of her savings into corporate bonds. Her financial planner, Jamie Sheridan, has suggested the following bonds:
Boeing (BA)Bonds have a 11 percent coupon rate and mature in 15 years
McDonalds (MCD) Bonds have a 5 percent coupon rate and mature in 15 yearsPfizer (PFE) Bonds have an 10 percent coupon rate and mature in 15 years
Each bond has a yield to maturity of 10 percent.}
1) Calculate the expected current or interest yield for each bond in every year? Put your results into a table format.
2) What is the expected capital gains yield for each bond in every year but the last? What is the expected total return for each bond in every year? Put your results into a table format.