Question: Consider an 8% coupon, 30-year maturity bond with par value of $1,000. The current yield for this bond is 8%. a. Estimate capital gains if

Consider an 8% coupon, 30-year maturity bond with par value of

Consider an 8% coupon, 30-year maturity bond with par value of $1,000. The current yield for this bond is 8%. a. Estimate capital gains if the yield goes to 14% b. Estimate the current yield of this bond if the yield is 14 %. Consider an 8% coupon, 30-year maturity bond with par value of $1,000. The current yield for this bond is 8%. a. Estimate capital gains if the yield goes to 14% b. Estimate the current yield of this bond if the yield is 14 %

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