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Bond P is a premium bond with a coupon of 8 percent. Bond D has a coupon rate of 3 percent and is currently selling
Bond P is a premium bond with a coupon of 8 percent. Bond D has a coupon rate of 3 percent and is currently selling at a discount. Both bonds make annual payments, have a YTM of 5 percent, and have ten years to maturity. What is the current yield for Bond P and Bond D? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (eg.. 32.16).) Current yield % Bond P Bond D 9 If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P and Bond D? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Enter your answers as a percent rounded to 2 decimal places (e.g. 32.16).) Capital gains yield % Bond P Bond D %
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