Question
Volkswagen bonds currently sell for $902.85. They pay a 4.14% monthly coupon, have an 18-year maturity, and a face value of $1,000, but they can
Volkswagen bonds currently sell for $902.85. They pay a 4.14% monthly coupon, have an 18-year maturity, and a face value of $1,000, but they can be called in 6 years at $1,312.65. Given this information, the capital gain yield is closest to
A. 0.0071%.
B. 0.0945%.
C. 0.3714%.
D. 0.6878%.
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
11th Global Edition
1292094184, 978-1292094182
