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Bond P is a premium bond with a 9 percent coupon. Bond D is a 4 percent coupon bond currently selling at a discount. Both
Bond P is a premium bond with a 9 percent coupon. Bond D is a 4 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 6 percent, and have six years to maturity. |
What is the current yield for bond P and bond D? (Round your answers to 2 decimal places. (e.g., 32.16)) |
Current yield | |
Bond P | % |
Bond D | % |
|
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. Round your answers to 2 decimal places. (e.g., 32.16))) |
Capital gains yield | |
Bond P | % |
Bond D | % |
|
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