Question
One year ago, Gangnam Inc. issued a 12-year, 5% 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, 5% 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 $724.31. The bond has a yield to maturity of 9%.
What is the current yield?
What is the expected capital gains yield for the coming year?
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
13th edition
1285198840, 978-1285198842
