A bond issued by Manchester United with a face value of $1,000 and a coupon rate of 3% and a maturity of 4 years.
How much will MU need to pay its bond holders to recall the bond after 3 years?
What is the current yield if the bond is currently selling for $980?
What is the capital gains yield if you expect the same bond can be sold in one year for $1,020?
What is the total expected return?
If the current market rate is 5% what is the present value of the bond?