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Bond A has the following features: a face value of $1000, a coupon rate of 6% (annual coupons), a yield to maturity of 10% and

Bond A has the following features: a face value of $1000, a coupon rate of 6% (annual coupons), a yield to maturity of 10% and a time to maturity of six years. What is the expected capital gain on Bond A between year one and year two, assuming the yield to maturity stays at 10%?

2.73%
7.07%
2.93%
7.27%

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