Question

Use the following corporate bond quote information to answer the questions that follow. Since this is a corporate bond,

Answer 1

Answer:

Check the explanation

Explanation:

Bond             Cur.Yld.      Vol.   Close      Net Chg.  

Doh! 9 ½ 18     9.0          5      105 1/2      - 1/4  

Doh! 8 ½ 21     9.4        10      90 1/4        -1/2  

 

 

1.  As given in question:  

Closing Price of the first bond:    =105.5*10  

 =1055  

 

Closing Price of the second bond:  =90.25*10  

 =902.5

2.  Yesterday's price for first bond:  =(105.5+0.25)*10

 =1057.5  

 

Yesterday's price for second bond:  =(90.25+0.5)*10

 =907.5

3.  kindly check the attached image below to see the solution to question 3

4.  Capital Gain Yield for first bond  =(P1-P0)/P0

 =(1055-1057.5)/1057.5

 =-0.236%