Reference no: EM13583588

Bond P is a premium bond with an 9.7 percent coupon. Bond D is a 5.7 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 7.7 percent, and have twelve years to maturity.

Requirement 1:
What is the current yield for bond P?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)

Requirement 2:
What is the current yield for bond D?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)

Requirement 3:
If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)

Requirement 4:
If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond D?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)