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a. A 10-year $1000-par 6% coupon bond has a YTM of 8.5%. What is the bond's expected capital gains yield? b. If you sell the

a. A 10-year $1000-par 6% coupon bond has a YTM of 8.5%. What is the bond's expected capital gains yield?

b. If you sell the bond 4 years after buying it, and the bond's yield has changed to 7.5%, what is your HPR?

c. What sale price would have been required in order for the investor to have earned a 12% HPR?

d. What YTM would be required for the bond to have the sale price you found in the previous question?

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