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3. a. Price a German government bond with a 4 1/8 coupon rate and 20 years to maturity. Assume 4% yield b. Calculate the bond

3. a. Price a German government bond with a 4 1/8 coupon rate and 20 years to maturity. Assume 4% yield

b. Calculate the bond current yield (maintain at least four decimal digits accuracy).

c. Calculate the one year capital gain rate. d. Show the relationship between the current yield, the capital gains rate and the yield to maturity.

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