You just bought a 7-year zero coupon bond for $742.77. What is the expected) taxable capital...

Question

Question

You just bought a 7-year zero coupon bond for $742.77. What is the expected) taxable capital gain on this bond a year from no

Answer 1

Answer #1

А B 1 Price of the bond $742.77 2 yield to maturity 4.34% 3 Price of the bond one year from now $775.00 4 5 Capital gain $32.

Calc:

1 A B 1 Price of the bond 742.77 2 yield to maturity =RATE(7,0,-B1,1000) 3 Price of the bond one year from now !=PV(B2,6,0,-1

Answer 2

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