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| Chapter 12 - Prices and Yields |
| 199 |
In the price-yield curve the caption should read:
Price Yield Curve on a
4
year 6% semi-annual coupon bond.
In addition, the points, though properly labeled look a little skewed from the axis. So the 20%, 62.656 point looks to be aligned with the 19% rather than the 20% mark on the axis. Also there should be no $ signs on the price axis.
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| 200 |
In the calculation of Current or Income Yield both the yield in the numerator and the price in the denominator are % of face value. Thus the equation should read either:
| 6.00 |
= 0.054237 = 5.42% |
OR
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6.00% |
= 0.054237 = 5.42% |
| 110.6250 |
110.6250% |
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