What is the expected one year capital gain yield on the


1. Seattle seafood company has an issue of 5 years, 9% annual coupon bonds outstanding. The bonds, which were originally issued by 15 years ago have a face value (FV) of $1000, a yield to maturity (YTM) of 12% nad are noncallable. What is the current market price of SSC's bonds?

a. $891.86

b. $758.08

c. $981.05

?d. 1,114.83

2. Are the bonds of seattle company selling at a discount, at par, or at a premium?

a. Par

b. Premium

c. Discount

?3. What is the current yield on seattle seafood company's outstanding bonds?

a. 9.17%

b. 10.09%

c. 8.07%

d. 11.87%

?4. What is the expected one year capital gain yield on the bonds of seattle seafood company?

a. 1.73%

b. 2.25%

c. 1.53%

d. 1.91%

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Financial Management: What is the expected one year capital gain yield on the
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