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(a) What is the yield to maturity of a bond that has 6 years left to maturity, has 12.5 percent coupon. The face value is

(a) What is the yield to maturity of a bond that has 6 years left to maturity, has 12.5 percent coupon. The face value is Taka 1,000. It is currently selling for Tk 1040?

(b) Determine the current yield and expected capital gain on the bond.

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