Question a 6-year 900 semiannual coupon bond with a par, Ask an Expert

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Question: A 6-year, 9.00% semiannual coupon bond with a par value of $1000 may be called in 4 years at a call price of $1,249.00. The bond sells for $895.50. (Assume that the bond has just been issued.).

a. What is the bond's capital gain or loss yield? Loss should be indicated with minus sign.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92767417

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