Question
A bond has a par value of $1,000, a time to maturity of 20 years, and a coupon rate of 7.00% with interest paid annually.
| A bond has a par value of $1,000, a time to maturity of 20 years, and a coupon rate of 7.00% with interest paid annually. If the current market price is $700, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Capital gain | $ |
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Short Term Financial Management
Authors: Ned C Hill
1st Edition
0023548207, 978-0023548208
