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A bond has a 10percent coupon rate, makes annual payments, matures in 12 years, and has...

A bond has a 10percent coupon rate, makes annual payments, matures in 12 years, and has a yield-to-maturity of 7percent.

1.Given this:

a. What is the price of the bond today?

b. What is the bond’s current yield?

c. Based on the yield-to-maturity and the current yield, what is the bond’s expected capital gains yield over the next year?

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jeff jeffy answered 2 years ago
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