Question: Robert bought a new issue of a 10 year bond with

Robert bought a new issue of a 10-year bond with a coupon rate equal to 8 percent. If Robert sells the bond at the end of the year when its market price is $925, what return would he earn? What portion of the return is the capital gains yield and what portion is the current yield?

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  • CreatedNovember 24, 2014
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