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Based on data, given below, calculate the rate of capital gain (%) and the rate of return (%) of the bond, for each year to

Based on data, given below, calculate the rate of capital gain (%) and the rate of return (%) of the bond, for each year to maturity.

Years to maturity when bond is purchased Initial current yield (%) Initial price ($) Price next year ($) Rate of capital gain (%) Rate of return (%)

30 10 1000 907

20 10 1000 916 - -

5 10 1000 947 - -

2 10 1000 982 - -

1 10 1000 1000 - -

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