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The HUANG Company currently has one bond issue outstanding. This bond pays a coupon rate of 8% ($80 per year) and matures in six years,

The HUANG Company currently has one bond issue outstanding. This bond pays a coupon rate of 8% ($80 per year) and matures in six years, and has a par value of $1,000. If you require a 14% rate of return,

What is the capital gain yield of this bond in the first year?

a. 3.57%

b. 3.92%

c. 4.09%

d. 4.18%

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