Question
You decide to purchase a bond issued by Wing Oh which carries a 7% annual coupon rate and has a 15-year to maturity. The bonds
You decide to purchase a bond issued by Wing Oh which carries a 7% annual coupon rate and has a 15-year to maturity. The bonds face value is $1,000. One year from now, the yield to maturity on this bonds is 6.4%. What is the capital gains yield and total rate of return that you realize on this bond over this one-year period?
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Handbook Of Consumer Finance Research
Authors: Jing Jian Xiao
2nd Edition
3319288857, 978-3319288857
