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and US corporation issued a 20 year corporate bond seven years ago today. It is currently priced at $1009 and has a coupon rate of
and US corporation issued a 20 year corporate bond seven years ago today. It is currently priced at $1009 and has a coupon rate of 6%. What is the required return of the investor?
A. 6.00% B. 4.02%, with a positive capital gains yield. C. 5.90% with a positive capital gains yield. D. 4.02%, with a negative capital gains yield. E. 5.90% with a negative capital gains yield. F. Not enough information provided, however, the yield should be lower then the coupon rate. A. 6.00% B. 4.02%, with a positive capital gains yield. C. 5.90% with a positive capital gains yield. D. 4.02%, with a negative capital gains yield. E. 5.90% with a negative capital gains yield. F. Not enough information provided, however, the yield should be lower then the coupon rate Step by Step Solution
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