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Bond P is a premium bond with a 9 percent coupon. Bond D is a 5 percent coupon bond currently selling at a discount. Both

Bond P is a premium bond with a 9 percent coupon. Bond D is a 5 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 7 percent, and have 10 years to maturity.

Current Yield for Bond P?

Current Yield for Bond D?

If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P and Bond D?

Capital Gains Yield for Bond P?

Capital Gains Yield for Bond D?

Please show work.

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