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1. Person is considering investing in a bond with a $1,000 par value and a 6% coupon rate. The bond has five years to maturity.

1. Person is considering investing in a bond with a $1,000 par value and a 6% coupon rate. The bond has five years to maturity. Yield - 4% A) If you sell the bond next year after receiving a coupon payment, what is the capital return (return from price difference)?

B) Calculate the current yield.

C) Calculate the total return of this one-year investment.

D) What is the total return if you keep the bond until maturity?

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