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You are given the following information concerning a non-callable, sinking fund debenture bond: 7% Coupon rate Principal Term to maturity $1,000 20 years a) If

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You are given the following information concerning a non-callable, sinking fund debenture bond: 7% Coupon rate Principal Term to maturity $1,000 20 years a) If you buy the bond today at its face amount and interest rates rise to 12 percent after five years have passed, what is you capital gain or loss? b) What is the bond's current yield after five years? c) Given your price in a, what is the current yield to maturity? d) is there any reason to believe that the bond will be called after five years have elapsed ir interest rates decline

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