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You purchase a 3 year bond for $980 (FV=$1000). The bond pays a 5% annual coupon. What is the current yield of the bond? If

You purchase a 3 year bond for $980 (FV=$1000). The bond pays a 5% annual coupon.

What is the current yield of the bond?

If the YTM drops by 0.50% over the next year, what will be your total return over the next year?

What will be your capital gains/losses on the bond?

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