A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8.40% with interest paid annually. If the curre market price is $840, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Capital gain
A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8.40% with interest paid annually. If the curre market price is $840, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Capital gain
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8.40% with interest paid annually. If the current
market price is $840, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains
unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Capital gain](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff992123b-8043-4cda-baec-1be663f3d312%2F4cd0be93-88dc-4c21-a3ae-0c5cd6d03644%2Fexy8x9d_processed.png&w=3840&q=75)
Transcribed Image Text:ces
A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8.40% with interest paid annually. If the current
market price is $840, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains
unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Capital gain
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