What is the capital gain (as a percentage of the price paid) on a coupon bond with face-value $100, coupon rate equal to 6%, and a time-horizon of 10 years sold after a year when interest rates are 5% if the investor paid $100 to purchase the bond?

Answer rating: 100% (QA)

To calculate the capital gain percentage on a coupon bond we need to consider the difference between ... View the full answer