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7 Bond P is a premium bond with a coupon rate of 10 percent. Bond D has a coupon rate o 5 percent and have
7 Bond P is a premium bond with a coupon rate of 10 percent. Bond D has a coupon rate o 5 percent and have a YTM of 7 percent, and have nine years to maturity currently selling at a discount Both bonds make annual payments, 2.5 current yield for BondP and Bond unded to 2 desim als a. calculations and enter your answers D? (Do not points e.g.. 32.16.) If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P and Bond D? (A negative answer shou ld be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b eBook Hint a. Bond P current yield Bond D current yield b. Bond P capital gains yield Ask Bond D capital gains yield Print
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