What is the current yield for bond

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Bond P is a premium bond with a coupon rate of 11 percent. Bond D has a coupon rate of 6 percent and is currently selling at a discount. Both bonds make annual payments, have a YTM of 8 percent, and have eight years to maturity.

What is the current yield for bond P and bond D? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Current yield

  Bond P %

  Bond D %

If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P and bond D? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Capital gains yield

  Bond P %

  Bond D %

Reference no: EM131967629

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