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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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