Choose 5 different Canadian bonds with the following characteristics:
One Federal government bond trading at a premium with more than ten years to maturity
One Federal government bond trading at a discount with any maturity
One corporate bond trading at a discount with less than ten years to maturity
One corporate bond trading at a premium with more than ten years to maturity
One Provincial government bond trading at a premium with any maturity
For each bond, calculate the current yield.
Compare the current yield to the yield to maturity. For which bonds is current yield closer in value to the yield to maturity? Explain
A bond with $1,000 face value, 6% coup