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Bond X has par value $1,000 and coupon rate 4% (paid annually). You bought Bond X exactly one year ago, when had n years remaining
Bond X has par value $1,000 and coupon rate 4% (paid annually). You bought Bond X exactly one year ago, when had n years remaining to maturity. The yield to maturity on the purchase date was 6% EAR. Today, the yield to maturity is 6% EAR. The capital gains yield for the one year holding period is ____. (Choose all that apply)
a) negative | ||
b) zero | ||
c) positive | ||
d) < 6% EAR
| ||
e) = 6% EAR
| ||
f) > 6% EAR
| ||
g) impossible to determine without knowing n |
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