Omega Inc. holds a 12-year bond that has a 12 percent coupon rate. It is currently selling for $1,190, which is the bond's face value. If interest is paid semiannually, what is the capital gains yield after one year? Group of answer choices -0.75% 10.08% 9.33% -2.35% 5.99%

Omega Inc. holds a 12-year bond that has a 12 percent coupon rate. It is currently selling for $1,190, which is the bond's face value. If interest is paid semiannually, what is the capital gains yield after one year? Group of answer choices -0.75% 10.08% 9.33% -2.35% 5.99%

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

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Question

-0.75%

10.08%

9.33%

-2.35%

5.99%

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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