Respuesta :
The correct statement is A)The bond's expected capital gains yield is zero.
A capital gain is the boom in a capital asset's fee and is found out when the asset is bought. Capital profits follow any form of assets, such as investments and those bought for non-public use. The advantage may be a quick-time period (365 days or less) or a long-time period (a couple of years) and have to be claimed on earnings taxes.
Capital gain is a financial idea defined because the income earned at the sale of an asset has increased in fee over the holding length. An asset might also encompass tangible property, an automobile, an enterprise, or intangible assets including shares.
Capital profits and losses are calculated with the aid of subtracting the amount you paid for an asset from the amount you offered it for. If the selling price changed to lower than what you had paid for the asset at the start, then it's miles a capital loss. you may then use this amount to calculate your capital gains tax.
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Question: A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is CORRECT?
a. The bond's expected capital gains yield is zero.
b. The bond's yield to maturity is above 9%
c. The bond's current yield is above 9%
d. If the bond's yield to maturity declines, the bond will sell at a discount.
e. The bond's current yield is less than its expected capital gains yield
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