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You bought a 4-year bond with 10% coupon rate and $1,000 face value that is offering a 9% current yield today, exactly two years after
You bought a 4-year bond with 10% coupon rate and $1,000 face value that is offering a 9% current yield today, exactly two years after its issue date (after its second coupon payment).
a) What is the yield on this bond today?
b) What would be the capital gains rate from this year to next year?
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