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Question 3: Indus Ltd. has bonds outstanding with 9 years left to maturity. The bonds have an 8% semi-annual coupon rate and were issued 1

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Question 3: Indus Ltd. has bonds outstanding with 9 years left to maturity. The bonds have an 8% semi-annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $901.40. The capital gains yield last year was 9.86%. a) What is the yield to maturity? b) For the coming year, what are the expected current and capital gains yields

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