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QUESTION

Boca Jet is currently selling at $1,050, with 8% annual coupon payment and 1000 par. These bonds have 16 years left until maturity. What is the yield...

Boca Jet is currently selling at $1,050, with 8% annual coupon payment and 1000 par. These bonds have 16 years left until maturity. 

  1. What is the yield to maturity? 
  2. Assume yield to maturity remain the same, what is the price a year later (with 15 years left until maturity)? 
  3. From current year to next year, calculate the current yield, capital gain, and total return from the bond?

Yield to maturity = ??

Price a year later = ??

Current yield = ??

Capital gain = ??

Total return = ??

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