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A 08.10% annual coupon, 7 year bond has a yield to maturity of 08.60%. Assuming the par value is $1,000 and the YTM is expected
A 08.10% annual coupon, 7 year bond has a yield to maturity of 08.60%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year:
a) What should the price of the bond be today?
b)What is bond price expected to be in 1 year?
c) what is the expected capital gains yield for the bond?
d) What is the expected current yield for this bond?
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