A 20-year bond has a 4% coupon rate, a 6.22% YTM, and sells for $750. The current yield will be % and the expected capital gain yield over the next year should be %. Assume annual payment. | Write your answer as a whole number with two decimals: eg, 6.87% = 6.87.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Question

 The current yield __% and the expected capital gain yield over the next year should be ___%

Thank you 

A 20-year bond has a 4% coupon rate, a 6.22% YTM, and sells for $750. The current yield will
be
% and the expected capital gain yield over the next year should be
%. Assume annual payment. |
Write your answer as a whole number with two decimals: eg, 6.87% = 6.87.
Transcribed Image Text:A 20-year bond has a 4% coupon rate, a 6.22% YTM, and sells for $750. The current yield will be % and the expected capital gain yield over the next year should be %. Assume annual payment. | Write your answer as a whole number with two decimals: eg, 6.87% = 6.87.
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