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Callaghan motors bonds have 10 years remaining to maturity

06/10/2021 Client: muhammad11 Deadline: 2 Day

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 gain/loss yield?

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