A 10 year ZXU Incorporated bond you purchased is contracted to pay a semi-annual 6.75% coupon. If you purchase this bond for $1,089.64 it will have a yield to maturity of 5.569%.What is the expected capital gain or loss for the first year holding period?
(a)a capital loss of 0.62%
(b)a capital loss of 1.18%
(c)a capital loss of 3.40%
(d)a capital gain of 1.18%
(e)a capital gain of 0.62%. Get Finance homework help today