Question: A 8 . 8 9 % annual coupon, 2 0 - year bond has a yield to maturity of 5 . 3 2 % .

A 8.89% annual coupon, 20-year bond has a yield to maturity of 5.32%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond? Please share your answer as a %.

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