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A bond with a face value of $1,000 is trading at $950. The bond is non-callable and will mature in 12 years. The bond has

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A bond with a face value of $1,000 is trading at $950. The bond is non-callable and will mature in 12 years. The bond has a 4.00% coupon rate and makes annual coupon payments. Assume the vield to maturity (YTM) will remain constant over the life of the bond. What would you expect the CAPITAL GAINS YIELD (% change in price) to be on this bond over the next year? Please round your answer to two (2) decimal places. (e 1.23%)

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