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 $655.39. The bond has a yield to maturity of 9%.
a) What is the current yield?
b) What is the expected capital gains yiels for the coming year?
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
