Which of the following equations is used to compute the percentage rate of return on a bond?
A. Percentage rate of return on a bond = Current yield + Coupon rate of interest
B. Percentage rate of return on a bond = Current yield + Capital gains yield
C. Percentage rate of return on a bond = Market return + Maturity value
D. Percentage rate of return on a bond = Market yield + Current yield
E. Percentage rate of return on a bond = Market yield + Capital gains yield
Answer: B
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