Question

Based on data, given below, calculate the rate of capital gain (%) and the rate of...

Based on data, given below, calculate the rate of capital gain (%) and the rate of return (%) of the bond, for each year to maturity (show calculations for each answer)

Years to maturity when bond is purchased

Initial current yield

Initial Price

Price Next Year

Rate of capital gain

Rate of return

30

10

1000

907

20

10

1000

916

5

10

1000

947

2

10

1000

982

1

10

1000

1000
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