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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 (show calculations for each answer)
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 |
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20 | 10 | 1000 | 916 |
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5 | 10 | 1000 | 947 |
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2 | 10 | 1000 | 982 |
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1 | 10 | 1000 | 1000 |
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