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Gulf, Inc. has issued a $1,000 par 4% annual coupon bond that is to mature in 10 years. If you are planning to sell it
Gulf, Inc. has issued a $1,000 par 4% annual coupon bond that is to mature in 10 years. If you are planning to sell it at $1100 one year from now. If your required rate of return is 6.5%, what price would you be willing to pay for the bond now? What would be your current yield, capital gain or loss, and total rate of return one year from now?
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