A bond has a par value of $1,000, a time to maturity of 15 years, and a coupon rate of 8.80% with interest paid annually. If the current market price is $880, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Show transcribed image textA bond has a par value of $1,000, a time to maturity of 15 years, and a coupon rate of 8.80% with interest paid annually. If the current market price is $880, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
What is the current yield for bond P? (Do not round intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)
Current yield
%
Requirement 2:
What is the current yield for bond D? (Do not round intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)
Current yield
%
Requirement 3:
If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P? (Do not round intermediate calculations.Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)
Capital gains yield
%
Requirement 4:
If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond D? (Do not round intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)