Solution-What is capital gain yield of this bond in the

What is capital gain yield of this bond in the first year

Reference no: EM133056104

Question - Kessen Inc's bond mature in 7 years, have a par value of $1,000, and a coupon rate of 7%. The yield to maturity if this bond is 8.5%. This is an annual bond. What is the capital gain yield of this bond in the first year?

a. 2.551%

b. 1.619%

c. 1.824%

d. 0.918%

Reference no: EM133056104

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What is capital gain yield of this bond in the first year

Reference no: EM133056104

Reference no: EM133056104

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Accounting Basics Questions & Answers

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Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

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