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(b) Now, suppose TSMC issues a 10% annual coupon bond that currently

sells for $925.26. The par value of the bond is $1,000. The bond price will increase to $928.28 in the next year. Assume that YTM does not change from year 0 to year 1. Please find the current yield and the capital gain yield of the bond and determine the YTM of the bond.

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Subject: Business, Finance

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