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Bond P is a premium Bond with a coupon rate of 9 percent. Bond D is a discount Bond with a coupon rate of 5
Bond P is a premium Bond with a coupon rate of 9 percent. Bond D is a discount Bond with a coupon rate of 5 percent. Both Bonds make annual payments, have a YTM of 7 percent, a par value of $1,000, and have five years to maturity. What is the current yield for Bond P? Current yield % What is the current yield for Bond D? Current yield % If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P? Capital gains yield % If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond D? Capital gains yield %
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