Today, you paid $800 for a 2.75% annual coupon bond that has 25 years to maturity. If

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Today, you paid $800 for a 2.75% annual coupon bond that has 25 years to maturity. If 4 years from now you sell your bond for $880.

What will be your capital gains yield?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Jul 05, 2023 07:29 AM

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Today, you paid $800 for a 2.75% annual coupon bond that has 25 years to maturity. If

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To calculate the capital gains yield we need to determine the change in price of the bo... View the full answer

Income Tax Fundamentals 2013

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