Question
You buy a bond with the following features: 6 years to maturity, face value of $1000, coupon rate of 4% (annual coupons) and yield to
You buy a bond with the following features: 6 years to maturity, face value of $1000, coupon rate of 4% (annual coupons) and yield to maturity of 2.1%. Just after you purchase the bond, the yield to maturity rises to 5.2%. What is the capital gain or loss on your bond?
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The Dark Side Of Valuation
Authors: Aswath Damodaran
3rd Edition
0134854101, 9780134854106
