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a. Wee Beastie Animal Farm bonds have 9 years to maturity and pay an annual coupon at the rate of 6 %. The face value
a. Wee Beastie Animal Farm bonds have 9 years to maturity and pay an annual coupon at the rate of 6 %. The face value of the bonds is $1,000.The price of the bonds is $1,082.29 to yield 4.85%.What is the capital gain yield on the bonds?
b. A 10-year bond pays interest of $ 26.80 semiannually, has a face value of $1,000 and is selling for $719.86.What are its annual coupon rate and yield to maturity?
The annual coupon rate is %.(Round to two decimal places).
The yield to maturity is %.(Round to two decimal places).
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