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Posted on Aug 27, 2024

suppose you purchased a 1 4 % semiannual coupon bond that has 7 years remaining to maturity today when its yield to maturity is 1

suppose you purchased a $14 %$ semiannual coupon bond that has $7$ years remaining to maturity today when its yield to maturity is $16 % .$ you plan to sell this bond next year and you estimate the yield to maturity on ths bond to be $18 %$ a year from today. calculate the current and capital gains yield for this bond and your total return during your holding period. face value is $1000$ dollars.

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