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a. Price a French government bond with a 4.25% coupon rate and 30 years to maturity. The yield to maturity on similar bonds is 5.0%.b.

a. Price a French government bond with a 4.25% coupon rate and 30 years to maturity. The yield to maturity on similar bonds is 5.0%.b. Compute the bond current yield.c. Compute the bond price one year later and the capital gains rated. Show the relationship between the current yield, the capital gains rate and the yield to maturity.

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