Bond P is a premium bond with a coupon rate of 10 percent. Bond D...
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Finance
Bond P is a premium bond with a coupon rate of 10 percent. Bond D has a coupon rate of 5 percent and is currently selling at a discount. Both bonds make annual payments, have a par value of $1,000, a YTM of 7 percent, and have ten 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.)
a. Bond P Current Yield
a. Bond D Current Yield
b. Bond P Capital gains yield
b. Bond D Capital gains yield
please show work steps thank you
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