Question: A $1000-face-value bond has a 10% coupon rate, its current price is $966, and its price is expected to increase to $982 next year. Calculate
A $1000-face-value bond has a 10% coupon rate, its current price is $966, and its price is expected to increase to $982 next year. Calculate the current yield, the expected rate of capital gain, and the expected rate of return.
The current yield is _____ (Round to the nearest whole number.)
The expected rate of capital gain is _____ (Round to the nearest whole number.)
The expected rate of return is ______ (Round to the nearest whole number.)
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