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QUESTION
Bond Returns A 15-year, $1,000 par value bond has an 8.5% annual payment coupon.The bond currently sells for $925.
Bond Returns
A 15-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. After one year, assuming the the yield to maturity (discount rate) remains the same as previous, calculate the following returns between the two years:
1) Current yield
2) Capital gains yield
3) Total returns
