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Bond Valuation Bond A has a 9% annual coupon, matures in 12 years, and has a $1,000 face value. Bond B has a 10% annual
Bond Valuation
Bond A has a 9% annual coupon, matures in 12 years, and has a $1,000 face value.
Bond B has a 10% annual coupon, matures in 12 years, and has a $1,000 face value.
Bond C has an 8% annual coupon, matures in 12 years, and has a $1,000 face value.
Each bond has a yield to maturity of 9%.
Please answer the following 3 questions in the format below for each.
- What is the expected current yield for each bond in each year? Round your answers to two decimal places.
- What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places.
- What is the total return for each bond in each year? Round your answers to two decimal places.
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