Current value of the bond and current yield and capital gain yield that is generated by the bond in year 3. Introduction: Bond refers to the financial instruments that are issued to raise funds from the public for a fixed maturity period and a fixed interest rate is paid. The capital gain yield on the bond can be determined by subtracting the previous market price and the current market and dividing the arrived value by the previous market price of the bond.

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Chapter 6, Problem 19PROB

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To calculate: Current value of the bond and current yield and capital gain yield that is generated by the bond in year 3.

Introduction: Bond refers to the financial instruments that are issued to raise funds from the public for a fixed maturity period and a fixed interest rate is paid. The capital gain yield on the bond can be determined by subtracting the previous market price and the current market and dividing the arrived value by the previous market price of the bond.

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