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You are considering buying bonds in AZYX, Inc. The bonds have a par value of $1,000 and mature in 13 years. The annual coupon rate
You are considering buying bonds in AZYX, Inc. The bonds have a par value of $1,000 and mature in 13 years. The annual coupon rate is 20.0% and the coupon payments are annual. The bonds are currently selling for $811.00 based on a yield-to-maturity of 25.0%. What is the bond's expected capital gain/loss if the bonds are held until maturity?
8.78%
5.00%
0.00%
-5.83%
0.34%
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