Explain capital gain from bonds and meade corporation bonds, Ask an Expert

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Explain Capital Gain from Bonds

Current yield and capital gains yield

Meade Corporation bonds mature in 6 years and have a yield to maturity of 8.5 percent. The par value of the bonds is $1,000. The bonds have a 10 percent coupon rate and pay interest on a semi-annual basis. What are the current yield and capital gains yield on the bonds for this year? (Assume that interest rates do not change over the course of the year).

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Basic Finance, Finance

Category:- Basic Finance
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