Question
One year ago, Carson Industries issued a 11-year, $1,000 PAR coupon bond at its PAR value. This Bond's annual coupon rate is 7%. Coupons are
One year ago, Carson Industries issued a 11-year, $1,000 PAR coupon bond at its PAR value. This Bond's annual coupon rate is 7%. Coupons are paid 2 times in a year. The Bond is currently trading at $850. However, this bond can be called in 5 years from today at a price of $1020 What is the capital gains yield on this Bond for the coming year?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
6th Edition
0201538997, 978-0201538991
