Question
A $1000-face-value bond has a 10% coupon rate, its current price is $960, and it is expected to increase to $980 next year. Calculate the
A $1000-face-value bond has a 10% coupon rate, its current price is $960, and it 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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The Economics of Money Banking and Financial Markets
Authors: Frederic S. Mishkin
11th edition
133836797, 978-0133836790
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