Question
A bond has face value of $1,000, coupon rate of 4%, yield to maturity of 7%, and matures in 11 years. The coupon payments are
A bond has face value of $1,000, coupon rate of 4%, yield to maturity of 7%, and matures in 11 years. The coupon payments are made semiannually. Find current yield and capital gains yield in eight years. Group of answer choices CY=4.35%, CGY=2.65% CY=5.18%, CGY=1.82% CY=0, CGY=7% CY=7%, CGY=0%
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
