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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.
Read the following statement and select all of the statements below that apply. (THERE IS MORE THAN ONE STATEMENT THAT APPLIES)
The capital gains yield for the one year holding period is ____. (Choose all that apply)
negative | ||
zero | ||
positive | ||
< 6% EAR
| ||
= 6% EAR
| ||
> 6% EAR
| ||
impossible to determine without knowing n |
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