Eight years ago over-the-top trampolines issued a 15-year


Eight years ago, Over-the-Top Trampolines issued a 15-year bond with a $1,000 par value and 6% coupon rate. Today the going rate of interest on similar bonds is 6%. (a) What is the bond's current value? If the market rate stays at 6% for the remainder of the bond's life, what (b) current yield and (c) capital gains yield will bondholders receive during the next two years (i.e. years 9 and 10).

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Financial Management: Eight years ago over-the-top trampolines issued a 15-year
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