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  3. a bond has a par value of $1,000, a time to maturi

A bond has a par value of $1,000, a time to maturity of 10 years, and...

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Finance

A bond has a par value of $1,000, a time to maturity of 10years, and a coupon rate of 8.70% with interest paid annually. Ifthe current market price is $870, what will be the approximatecapital gain of this bond over the next year if its yield tomaturity remains unchanged? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)


  Capital gain$

Answer & Explanation Solved by verified expert
4.5 Ratings (863 Votes)
NperTime to maturity in years10PmtAnnual coupon payment1000878700PvCurrent market price870FvPayment at    See Answer
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