Problema bond has a par value of 1000 a time to maturity of, Ask an Expert

Finance

Problem:

A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest paid annually.

Required:

Question: If the current market price is $750, what is the capital gain yield of this bond over the next year?

.72%
1.85%
2.58%
3.42%

Note: Explain all calculation and formulas.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163494

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