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Business, 26.02.2020 17:02 cloey6544

Bond P is a premium bond with a coupon rate of 12 percent. Bond D has a coupon rate of 7 percent and is currently selling at a discount. Both bonds make annual payments, have a YTM of 9 percent, and have seven years to maturity. a. What is the current yield for Bond P and Bond D? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. g., 32.16.) b. If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P and Bond D? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. g., 32.16.)

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Bond P is a premium bond with a coupon rate of 12 percent. Bond D has a coupon rate of 7 percent and...
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