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a Bond P is a premium bond with a 8 percent coupon Bond D is a 3 percent coupon bond currently selling at a discount.
a Bond P is a premium bond with a 8 percent coupon Bond D is a 3 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 5 percent, and have ten years to maturity. What is the current yield for Bond P and Bond D? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Current yield % Bond P Bond D % If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P and Bond D? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))) Capital gains yield Bond P % Bond D
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