A few years ago, you purchased White Ltd Bond at a price of R9 120. The bond
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A few years ago, you purchased White Ltd Bond at a price of R9 120. The bond has a face value of R9 000 and it pays a coupon of 12% per-annum. The coupons are paid on the 30th June and 30th December every year. As of today, the bond is now left with 19 coupons to maturity and it is trading at a yield to maturity of 10%.
a) If you sell the bond today, how much will be your capital gain or loss?
b) What is the possible driver of the capital gain/loss?
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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