A 6.08% annual coupon, 22-year bond has a yield to maturity of 6.95%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond? Please share your answer as a %.
A 6.08% annual coupon, 22-year bond has a yield to maturity of 6.95%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond? Please share your answer as a %.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A 6.08% annual coupon, 22-year bond has a yield to maturity of 6.95%. Assuming the par value is
$1,000 and the YTM is expected not to change over the next year, what is the expected Capital
Gains Yield for this bond? Please share your answer as a %.
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