A 6.64% annual coupon, 22-year bond has a yield to maturity of 5.63%. 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 6.64% annual coupon, 22-year bond has a yield to maturity of 5.63%. 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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A 6.64% annual coupon, 22-year bond has a yield to maturity of 5.63%. 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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