Question: callaghan motors bonds have 7 years remaining to maturity interest...
Callaghan Motor’s bonds have 7 years remaining to maturity. Interest is paid annually, the
bonds have a $1,000 par value, and the coupon interest rate is 5.5 percent. The bonds have a yield to maturity of 8 percent.
1). What is the current market price of these bonds?
2). What is the current yield?
3). What is the capital gains yield?
4). These bonds sell at
a. par b. a premium c. a discount
Discount. Please show all worked typed as I am on mobile