A 6.64% annual coupon, 22-year bond has a yield to maturity of 5.63%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond? Please share your answer as a %.

A 6.64% annual coupon, 22-year bond has a yield to maturity of 5.63%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond? Please share your answer as a %.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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Question

A 6.64% annual coupon, 22-year bond has a yield to maturity of 5.63%. Assuming the par value is $1,000
and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for
this bond? Please share your answer as a %.

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