A ($1),100-face-value bond has a 5% coupon rate, its current price is ($1),040, and it is expected

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A \($1\),100-face-value bond has a 5% coupon rate, its current price is \($1\),040, and it is expected to increase to \($1070\) next year. Calculate the current yield, the expected rate of capital gains, and the expected rate of return.

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