Find what is the expected capital gains yield

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Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 8% annual coupon rate and were issued one year ago at their par value of $1,000 , but due to changes in interest rates, the bond's market price has fallen to $901.40 The capital gains yield last year was - 9.86%

For the coming year, what is the expected capital gains yield? Round your answer to two decimal places.

 

Reference no: EM13302420

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