Bond d is a 6 percent coupon bond currently selling at a


Question: Bond D is a 6 percent coupon bond currently selling at a discount. The bond makes annual payments, have a YTM of 7 percent, and have 10 years to maturity. What is the current yield for Bond D? If interest rate remain unchanged, what is the expected capital gain yield over the next year for Bond D?

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Finance Basics: Bond d is a 6 percent coupon bond currently selling at a
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