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Suppose you have a 1 0 % coupon bond, with semiannual coupons, face value of 1 , 0 0 0 , 3 years to maturity,
Suppose you have a coupon bond, with semiannual coupons, face value of years to
maturity, and $ as price. Compute the following:
a Current yield
b Yield to Maturity YTM
c Price in one year, assuming no change in YTM
d Capital gain yield after one year
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