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MJI Corporation bonds mature in 6 years and have a yield to maturity of 8.5 percent.The par value of the bonds is $1,000. The bonds

MJI Corporation bonds mature in 6 years and have a yield to maturity of 8.5 percent.The par value of the bonds is $1,000. The bonds have a 10 percent coupon rate andpay interest on a semiannual basis. Assuming there are no changes to interest rates during the course of the year, what are the current yield and capital gains yield on thebonds for this year?

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