Consider a 9-year, $1,000 par value, 12% annual-pay bond that is currently trading at a flat price of $888. The capital gains yield (CGY) is closest to   A.   0.7745%.   B.   0.4672%.   C.   0.3505%.   D.   0.0185%.

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A: Note: This post has several subparts. The first three have been solved below.        

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