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Q2. Manama Industries issued 20-year, 12% coupon bonds 5 years ago, at par. Three years ago, you purchased one of their bonds when it was

Q2. Manama Industries issued 20-year, 12% coupon bonds 5 years ago, at par. Three years ago, you purchased one of their bonds when it was yielding 6%. Today the yield-to-maturity (YTM) on these bonds is 13%. What is your Capital gains (losses) yield if you sell your bond today?

  1. 12.00%
  2. 24.00%
  3. -36.98%
  4. -44.50%
  5. None of the above, the answer is ______________%.

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