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(a) John has just bought an 8% bond that pays semi-annual coupons with $1,000 face value and 8 years to maturity. i) If the yield
(a) John has just bought an 8% bond that pays semi-annual coupons with $1,000 face value and 8 years to maturity.
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iii) Couldthetotalyieldbecomputedasthesumofthecurrentyieldandthecapitalgainsyield? Explain. (3 marks) |
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