What is the capital gain yield of this bond

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Collingwood Homes has a bond issue outstanding. These bonds have an 8.0% coupon that is paid semiannually. The bonds mature in 22 years. The bonds have a par value of $1,000 and a market price of $1,087.00.

What is the Yield to Maturity of this bond? ______________

What is the Current Yield of this Bond?_______________

What is the Capital Gain Yield of this Bond? _________________

If you expect inflation to be 2%/year over the life of the bond, what is the expected Exact Real Rate of Return

on this investment? _______________

Reference no: EM131464372

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