Goatboy Corporation bonds are currently priced at $1182.56 and have 25 years until maturity. The bonds have a 12% coupon rate and pay interest semiannually. The bonds also have a par value of $1000 and a yield to maturity of 10%. Assuming that the YTM stays the same, what would be the bond's capital gians yield if sold next year?

Goatboy Corporation bonds are currently priced at $1182.56 and have 25 years until maturity. The bonds have a 12% coupon rate and pay interest semiannually. The bonds also have a par value of $1000 and a yield to maturity of 10%. Assuming that the YTM stays the same, what would be the bond's capital gians yield if sold next year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 16P

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