# Question: callaghan motors bonds have 7 years remaining to maturity interest...

###### Question details

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?

**$869.84**

2). What is the current yield?

**6.32%**

3). What is the capital gains yield?

**1.68%**

4). These bonds sell at

a. par b. a premium c. a discount

**Discount. Please show all worked typed as I am on
mobile**