What will be the current yield and the capital gains yield


Bond P is a premium bond with an 8% coupon. Bond D is a 4% coupon bond currently selling at a discount. Both make annual payments, have YTM of 6%, and have five years to maturity. What will be the current yield and the capital gains yield for each bond for each of the next 5 years?

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Finance Basics: What will be the current yield and the capital gains yield
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