Question: 1. Over the next year, what is the current yield, capital gains yield, and total return (or total yield) of a 5 year bond with
1. Over the next year, what is the current yield, capital gains yield, and total return (or total yield) of a 5 year bond with a 4% YTM and a coupon rate of 5%? Assume the YTM over the next year remains the same.
2. Same question as above, except the YTM at the end of the year has risen to 4.5%. (
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