Posted by **LIT** on Tuesday, February 2, 2010 at 2:46pm.

Dahler Corporation has just issued a bond with a maturity of 20 years, coupon rate of 10.25%, and a market price of $1330.25. Dahler makes semiannual coupon payments.

a) what is the YTM expressed as a quoted rate based on semi-annual compounding? And what is the effective annual YTM on this bond?

b)What is the bond's expected price two years from now? What is its capital gains yield for year 2? What is its current yield at the beginning of year 2? What is the expected total return for year 2?

c) What would happen to the price of the bond over time, as the bond gets closer to maturity? (Again, assuming no change in interest rates)

## Answer This Question

## Related Questions

- Finance - A corporation has bonds on the market with 13.5 years to maturity, a ...
- FINANCE - Bond valuation Nungesser Corporationâ€™s outstanding bonds have a $1,000...
- Finance - Bond X is a premium bond making annual payments. The bond pays an 8 ...
- Finance - The Carter Company's bond mature in 10 years have a par value of 1,000...
- finance - 1. Yest Corporation's bonds have a 15-year maturity, a 7% semiannual ...
- Math - Suppose you have a $1,000 face value bond with 12 years to maturity, a ...
- finance - Suppose Delta Company issued bonds with a 15-year maturity, a Rs. 1,...
- Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
- Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
- Finance - 2. You are now considering adding a corporate bond to your investment ...

More Related Questions