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Bond P is a premium bond with a 1 9 % coupon. Bond D is a 6 % coupon bond currently selling at a discount.

Bond P is a premium bond with a

19 %

coupon. Bond D is a

6 %

coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of

15 %,

and have five ears to maturity. If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond D

?

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