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One year ago, Henderson Honey issued a 10-year bond for $1,000. The bonds coupon rate of interest is 4 percent, and interest is paid annually.
One year ago, Henderson Honey issued a 10-year bond for $1,000. The bonds coupon rate of interest is 4 percent, and interest is paid annually. If the current value of the bond is $929, what are (a) the current yield and capital gains yield Hendersons bondholders earned during the year and (b) the bonds yield to maturity today.
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