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Dynamo Systems has an outstanding bond that has a $5,000 par value and a 5% coupon rate. Interest is paid semi-annually. The bond has 10
Dynamo Systems has an outstanding bond that has a $5,000 par value and a 5% coupon rate. Interest is paid semi-annually. The bond has 10 years remaining until it matures. Today the going interest rate is 8%, and is expected to remain at that level for many years in the future. Compute the a) current yield, and b) capital gains yield the bond will generate this year
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