Question
You purchased 25 corporate bonds for $985.00 each and held them for one year, at which point you sold the bonds for $965.30 each. During
You purchased 25 corporate bonds for $985.00 each and held them for one year, at which point you sold the bonds for $965.30 each. During the year you received interest payments of $79.80 per bond. Calculate the capital gains yield on the bonds for the year during which you owned them. Report the percentage to 2 decimal places (13.358% = 13.36).
Step by Step Solution
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Step: 1
To calculate the capital gains yield we need to use the formula Capital gains yield ending price ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
