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A bond has a 10percent coupon rate, makes annual payments, matures in 12 years, and has a yield-to-maturity of 7percent. 1.Given this: a. What is

A bond has a 10percent coupon rate, makes annual payments, matures in 12 years, and has a yield-to-maturity of 7percent.

1.Given this:

a. What is the price of the bond today?

b. What is the bonds current yield?

c. Based on the yield-to-maturity and the current yield, what is the bonds expected capital gains yield over the next year?

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