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a 12-year 4% annual coupon bond with a face value of $100. Compute the current yield and the yield to maturity for the bond assuming

a 12-year 4% annual coupon bond with a face value of $100.

Compute the current yield and the yield to maturity for the bond assuming the price is:

A. P = 109

B. P = 97

You buy the bond for 97, hold it for one year, receive the coupon cash flow, and sell it for 96. The realized yield on your investment is:

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