Company B has a bond outstanding that pays an 8% coupon. The interest is paid semi-annually, and

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Company B has a bond outstanding that pays an 8% coupon. The interest is paid semi-annually, and the bond matures in 10 years. Company B's bond is selling at $980, what is its current yield?

What is it capital gain or loss yield, if the bond can be sold at $990 in a year?

Related Book For answer-question

Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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Posted Date: Mar 30, 2023 02:35 AM

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Company B has a bond outstanding that pays an 8% coupon. The interest is paid semi-annually, and

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Financial Institutions Management A Risk Management Approach

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