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Consider a bond with a coupon rate of 3%, a YTM of 4%, and a face value of $1000. Coupon payments are made annually. The
Consider a bond with a coupon rate of 3%, a YTM of 4%, and a face value of $1000. Coupon payments are made annually. The bond matures in 3 years. Trace bond value, current yield, and capital gains yield each year for the bond. Explain what is happening to bond value, current yield, and capital gains yield as the bond reaches maturity. As
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