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Bond P is a premium bond with a coupon rate of 1 3 percent. Bond D has a coupon rate of 8 percent and is
Bond P is a premium bond with a coupon rate of percent. Bond D has a coupon rate of percent and is currently selling at a discount. Both bonds make annual payments, have a par value of $ a YTM of percent, and have six years to maturity.
a What is the current yield for Bond P and Bond DDo not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
b If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P and Bond DA negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
a Bond P current yield
a Bond D current yield
b Bond P capital gains yield
b Bond D capital gains yield
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