Question: (Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH) 10) ACME Printing Inc has bonds outstanding with

(Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH)

10) ACME Printing Inc has bonds outstanding with 12 years left to maturity. The bonds have a 6% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bonds market price has fallen to $875.5. For the coming year, is the expected capital gains yield?

2.85%

.77%

-.55%

-2.05%

1.45%

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