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A $1,000-face-value has a 10% coupon rate, its current price is $960, and it is expected to increase to $980 next year. Calculate the current
A $1,000-face-value has a 10% coupon rate, its current price is $960, and it is expected to increase to $980 next year. Calculate the current yield, the expected rate of capital gain, and the expected rate of return. The expected rate of return is the sum of the current yield plus the expected rate of capital gain.
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