question archive KBC Corp has a bond with a coupon rate of 11% paid semiannually
KBC Corp has a bond with a coupon rate of 11% paid semiannually
Subject:FinancePrice:2.86 Bought3
KBC Corp has a bond with a coupon rate of 11% paid semiannually. The bond has 15 years to maturity and its par value is $1,000. Similar investments in the market are returning 13% per year. If the interest rates remain unchanged, what is the expected capital gains yield over the next year for the KBC Corp bond?
(If you make any calculations to obtain your answer for this question, you must describe what formula(s) you calculated and what input values you used for the formula(s) to get any points.)
