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a. a. Price a French government bond with a 3.0% coupon rate and 21 years to maturity. Assume a 5% yield b. Calculate the bond
a. a. Price a French government bond with a 3.0% coupon rate and 21 years to maturity. Assume a 5% yield b. Calculate the bond current yield (maintain at least four decimal digits accuracy). c. Calculate the one-year capital gain rate. d. Show the relationship between the current yield, the capital gains rate, and the yield to maturity.
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