Business, 08.07.2021 17:50 angelina6836

Bond P is a premium bond with a coupon rate of 9 percent. Bond D has a coupon rate of 5 percent and is currently selling at a discount. Both bonds make annual payments, have a par value of $1,000, a YTM of 7 percent, and 15 years to maturity. Requirement 1: What is the current yield for bond P?
Requirement 2: What is the current yield for bond D?
Requirement 3: If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P? Requirement 4: If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond D?

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Bond P is a premium bond with a coupon rate of 9 percent. Bond D has a coupon rate of 5 percent and...