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Bond P is a premium bond with a 11 percent coupon. Bond D is a 6 percent coupon bond currently selling at a discount. Both
Bond P is a premium bond with a 11 percent coupon. Bond D is a 6 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 8 percent, and have four years to maturity. What is the current yield for Bond P and Bond D ? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P and Bond D ? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)))
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