Question
One year ago, Gangnam Inc. issued a 12-year, 4% semiannual coupon bond at its par value of $1,000. The bond can be called in 8
One year ago, Gangnam Inc. issued a 12-year, 4% semiannual coupon bond at its par value of $1,000. The bond can be called in 8 years at a price of $1,100 and it now sells for $772.49. The bond has a yield to maturity of 7%.
A) What is the current yield?
B) What is the expected capital gains yield for the coming year?
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
20th Edition
1609303164, 978-1609303167
