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View Full Version : Current yield and the capital gains


omsokolova
Dec 17, 2006, 05:18 PM
Suppose you purchase a bond at Par priced to yield 10%. The bond has a principal value of $1000, pays annual coupon payments and a maturity of 5 years. What is the capital gain or loss if you sell the bond after 3 years when interest rates rose to 12%? Compute the current yield and the capital gains yield after 3 years.

mar3sh
Feb 8, 2011, 03:45 PM
How can I used the current yield and capital yield