Collingwood Homes has a bond issue outstanding. These bonds have an 8.0% coupon that is paid semiannually. The bonds mature in 22 years. The bonds have a par value of $1,000 and a market price of $1,087.00.
What is the Yield to Maturity of this bond? ______________
What is the Current Yield of this Bond?_______________
What is the Capital Gain Yield of this Bond? _________________
If you expect inflation to be 2%/year over the life of the bond, what is the expected Exact Real Rate of Return on this investment? _______________