Question: Find the total return (current yield plus the capital gains yield) for a, 5.77% annual coupon bond that we bought for $1,025, and has a
Find the total return (current yield plus the capital gains yield) for a, 5.77% annual coupon bond that we bought for $1,025, and has a face value of $1,000. Lets assume we sell it one year later for $995.
| A. | 1.88% | |
| B. | 2.70% | |
| C. | 3.22% | |
| D. | 4.82% |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
