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QUESTION

Calculate the price of a ten-year bond that has a coupon rate of 8 percent paid annually. The current market rate is 6%. Assume that the face value...

Calculate the price of a ten-year bond that has a coupon rate of 8 percent paid annually. The current market rate is 6%. Assume that the face value of the bond is $1000.

Calculate the expected capital gains yield for the coming year.

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