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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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