Approximate capital gain yield of bond, Finance Basics

+44 141 628 6080
[email protected]

Approximate capital gain yield of bond

A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8.60% with interest paid annually. If the current market price is $860, what will be the approximate capital gain yield of this bond over the next year if its yield to maturity remains unchanged?

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Approximate capital gain yield of bond

Reference No:- TGS039438

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Non-liquidating distribution to an individual shareholder

NOCO Inc. had current earnings and profits of $150,000 when it made a nonliquidating distribution to an individual shareholder of land that NOCO Inc. held for use in its business.

Q : Estimate the cost of common stock

The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is its WACC?

Q : How much to save during working period

Rachel is not allowed to borrow. Whenever possible, Rachel wants to smooth consumption between periods. How much will she save during her working period?

Q : Amount of the un-recognized gain

WESTO Inc.'s earnings and profits must be increased by $40,000 , the amount of the unrecognized gain, and decreased by $40,000 (the adjusted basis of the land), and increased by $55,000 (the amount of the liability).

Q : Approximate capital gain yield of bond

If the current market price is $860, what will be the approximate capital gain yield of this bond over the next year if its yield to maturity remains unchanged?

Q : Sustainable economic growth and price stability

How effective do you believe the FOMC has been using open market operations to achieve sustainable economic growth and price stability?

Q : Basis in the remaining stock-redemption

Assume that SMTO Inc.'s current earnings and profits were $200,000, there were no accumulated earnings and profits, and Lana's total basis in her stock before the redemption was $20,000. How much is Lana's basis in her remaining stock after the re

Q : Prepare the journal entry to record the sale of the bonds

In January 1, 2010, Novotna Company purchased $400,000,8% bonds of Aguirre Co. for $369,114. The bonds were purchased to yield 10% interest. Interest is payablesemiannually on July 1 and January 1. The bonds mature on January 1, 2015. Novotna Comp

Q : European call option price and european

What is the European call option price and European put option price, according to the Black-Scholes model? What is the cost of buying a protective put? What is the cost of writing a covered call?

1932192

Questions
Asked

3,689

Active Tutors

1447189

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Approximate capital gain yield of bond

Reference No:- TGS039438

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Non-liquidating distribution to an individual shareholder

Q : Estimate the cost of common stock

Q : How much to save during working period

Q : Amount of the un-recognized gain

Q : Approximate capital gain yield of bond

Q : Sustainable economic growth and price stability

Q : Basis in the remaining stock-redemption

Q : Prepare the journal entry to record the sale of the bonds

Q : European call option price and european

Describe some of your personality traits

Problem concerning consensual sexual relationship

Why you feel unpleasantly hot and sweaty

How ensure that the youth understand what study involves

Discussion about gender stereotyping

Describe the results, including any scores

How we perceive objects in the real world

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Approximate capital gain yield of bond

Reference No:- TGS039438

Recent Questions Asked Finance Basics

Q : Non-liquidating distribution to an individual shareholder

Q : Estimate the cost of common stock

Q : How much to save during working period

Q : Amount of the un-recognized gain

Q : Approximate capital gain yield of bond

Q : Sustainable economic growth and price stability

Q : Basis in the remaining stock-redemption

Q : Prepare the journal entry to record the sale of the bonds

Q : European call option price and european

Asked Questions