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You have just purchased a newly issued 1 0 0 0 $ five year vanguard company bond at par,with 1 2 % coupon paid semianualy

You have just purchased a newly issued 1000$ five year vanguard company bond at par,with 12% coupon paid semianualy : the company has issued another bond with a coupon of 6% paid semi annually with six years remaining to maturity assuming that these two bones have the same yield to maturity what should you be willing to pay for that Bond? B ) ASSUMING that after one year, the yield increaes by 1% calculate the capital gain for both bonds

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