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bond p is a premium bond with a 13 percent coupon. bond d is a 8 percent coupon bond currently selling at a discount. both

bond p is a premium bond with a 13 percent coupon. bond d is a 8 percent coupon bond currently selling at a discount. both bonds make annual payments, have a YTM of 10 percent, and have 6 years to maturity.

1. What is the current yield for bond p and bond d?

2. If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond p and bond d?

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