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The annual coupon rate of a bond is 6% and it matures in 11 years. Bonds of a similar maturity and risk are returning 4%
The annual coupon rate of a bond is
6%
and it matures in 11 years. Bonds of a similar maturity and risk are returning
4%
annually.\ Calculate the current yield of the bond.\ What will be your capital gains yield If you sell the bond today at its present value after purchasing it 11 years ago at par?\ What is the bond's total yield?
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