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Kiwi Mart Inc. has bonds outstanding with 9 years left to maturity. The bonds have 9% annual coupon rate and were issued 1 year ago
Kiwi Mart Inc. has bonds outstanding with 9 years left to maturity. The bonds have 9% annual coupon rate and were issued 1 year ago at their er value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $910.30. The capital gains yield last year negative 8.97%.
For the coming year, what are the expected current and capital gains yields?
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