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I just need help with the second part of this question. Thank you!!!! Bond P is a premium bond with a 11 percent coupon. Bond
I just need help with the second part of this question. Thank you!!!!
Bond P is a premium bond with a 11 percent coupon. Bond D is a 6 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 8 percent, and have four years to maturity. What is the current yield for bond P and bond D? (Round your answers to 2 decimal places. (e.g., 32.16)) Current yield Bond P10.00 % Bond D 6.40 % If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P and bond D? (Negative amount should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))) Capital gains yield Bond P % Bond D %Step by Step Solution
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