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Bond P is a premium bond with a coupon rate of 8 percent. Bond D has a coupon rate of 3 percent and is selling

Bond P is a premium bond with a coupon rate of 8 percent. Bond D has a coupon rate of 3 percent and is 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?

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

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