What is the expected current yield for this bond what is


A 05.50% annual coupon, 25-year bond has a yield to maturity of 04.50%.

Assuming the par-value is $1,000 and the YTM is expected not to change over the next year:

a) What should the price of the bond be today?

b) What is bond price expected to be in one year?

c) What is the expected Capital Gains Yield for this bond?

d) What is the expected Current Yield for this bond?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the expected current yield for this bond what is
Reference No:- TGS02772413

Expected delivery within 24 Hours