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Bond P is a premium bond with a 14 percent coupon....

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Bond P is a premium bond with a 14 percent coupon. Bond D is a 7 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 10 percent, and have 12 years to maturity. The current yield for Bonds P and D is ______ percent and ______ percent, respectively. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16)) If interest rates remain unchanged, the expected capital gains yield over the next year for Bonds P and D is _____ percent and _____ percent, respectively. (Do not include the percent signs (%). Negative amounts should be indicated by minus signs. Round your answers to 2 decimal places. (e.g., 32.16))

 

Paper#6975 | Written in 18-Jul-2015

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