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What is the yield to maturity on a 10-year, 9% annual coupon,$1,000 par value bond that sells for $887.00? That sells for$1,134.20? What does the fact that a bond sells at a discount or ata premium tell you about the relationship between and the bond’scoupon rate?What are the total return, the current yield, and the capitalgains yield for the discount bond? (Assume the bond is held tomaturity and the company does not default on the bond.)
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