A $1000-face-value bond has a 10% coupon rate, its current price is $960, and its price is

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A $1000-face-value bond has a 10% coupon rate, its current price is $960, and its price is expected to increase to

$980 next year. Calculate the current yield, the expected rate of capital gain, and the expected rate of return.

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Related Book For  book-img-for-question

The Economics Of Money Banking And Financial Markets

ISBN: 978-0134376936

6th Canadian Edition

Authors: Frederic S Mishkin ,Apostolos Serletis

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