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

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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

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