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Use the bond term's below to answer the question Maturity 5 years Coupon Rate 3% Face value $1,000 Annual Coupons Market Interest Rate 6% Assuming
Use the bond term's below to answer the question Maturity 5 years Coupon Rate 3% Face value $1,000 Annual Coupons Market Interest Rate 6% Assuming the market interest rate remains constant throughout the bond's life, what is percentage capital gains/loss between periods 0 and 1 ?
2.69% |
2.47% |
2.64% |
2.57% |
If the market interest rate stays constant, the one period Current Yield and the one period Capital Gains/Loss on the bond add-up to the bonds _____________
coupon rate |
current price |
par value |
total return |
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