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Bond P is a premium bond with a 10 percent coupon. Bond D is a 5 percent coupon bond currently selling at a discount. Both
Bond P is a premium bond with a 10 percent coupon. Bond D is a 5 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 8 percent, and have 5 years to maturity. The current yield for Bonds P and D is what, respectively.
If interest rates remain unchanged, the expected captial gains yield over the next year for Bonds P and D is what percentage, respectively.
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