What is the bond capital gain or loss yield

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Question: A 6-year, 9.00% semiannual coupon bond with a par value of $1000 may be called in 4 years at a call price of $1,249.00. The bond sells for $895.50. (Assume that the bond has just been issued.).

a. What is the bond's capital gain or loss yield? Loss should be indicated with minus sign.

Reference no: EM131928746

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