1) A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $1,050. (Assume that the bond has just been issued.)
What is the bond's yield to maturity? Do not round your intermediate calculations. Round your answer to two decimal places.
%
What is the bond's current yield? Do not round your intermediate calculations. Round your answer to two decimal places.
%
What is the bond's capital gain or loss yield? Loss should be indicated with minus sign. Do not round your intermediate calculations. Round your answer to two decimal places.
%
What is the bond's yield to call? Do not round your intermediate calculations. Round your answer to two decimal places.
%
2) The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%.
What is the yield to maturity at a current market price of $860? Round your answer to two decimal places.
%