Bond Valuation:
Q1. Calculate the Yield-to-Maturity on a 8 year, 9 percent semi-annual coupon, $1,000 par value bond that sells for $921.11 What is the YTM if that bond now sells for $1,157.67?
Q2. What is the total return, the current yield, and capital gains yield for the DISCOUNT bond (i.e. $921.11)? (Assume the bond is held to maturity and the company does not default on the bond).