Bond P is a premium bond with a coupon rate of 10 percent. Bond D...

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Finance

Bond P is a premium bond with a coupon rate of 10 percent. Bond D has a coupon rate of 5 percent and is currently selling at a discount. Both bonds make annual payments, have a par value of $1,000, a YTM of 7 percent, and have ten years to maturity.

a.

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

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

a. Bond P Current Yield

a. Bond D Current Yield

b. Bond P Capital gains yield

b. Bond D Capital gains yield

please show work steps thank you

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