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Required: A bond has a par value of $1,000, a time to maturity of 20 years, and a coupon rate of 7.40% with interest paid

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Required: A bond has a par value of $1,000, a time to maturity of 20 years, and a coupon rate of 7.40% with interest paid annually. If the current: market price is $740, what wil be the approximate capital gain of this bond over the next year if its yleld to maturity remains unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.) A two-year bond with par value $1,000 making annual coupon payments of $109 is priced at $1,000. Required: a. What is the yeid to maturity of the bond? (Round your answer to 1 decimal place.) b. What will be the realized compound yleld to maturity if the one-year interest rate next year turns out to be (a) 8.9%, (b) 10.9\%, (c) 129% ? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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