Approximate capital gain of bond


Problem:

A bond has a par value of $1,000, a time to maturity of 15 years, and a coupon rate of 7.60% with interest paid annually.

Required:

Question: If the current market price is $760, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged?

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Finance Basics: Approximate capital gain of bond
Reference No:- TGS0894098

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