One year ago, Carson Industries issued a 10-year, $1,000 PAR coupon bond at its PAR...
80.2K
Verified Solution
Link Copied!
Question
Finance
One year ago, Carson Industries issued a 10-year, $1,000 PAR coupon bond at its PAR value. This Bond's annual coupon rate is 13%. Coupons are paid 2 times in a year. The Bond is currently trading at $900. However, this bond can be called in 6 years from today at a price of $1065
What is the capital gains yield on this Bond for the coming year? Enter your answer in the following format: + or - 0.1234 Hint: Answer is between 0.0057 and 0.0068
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
