1 2 3 4 QUESTION 21 (4 POINTS) Bond Y is a premium bond with a coupon rate of 8 percent. Bond Z is a discount bond with a coupon rate of 6.1 percent. Both bonds make annual payments and have a YTM of 7.1 percent, a par value of $1,000, and six years to maturity. PART 1: (2 POINTS) What is the current yield for Bond Y? For Bond 2? (Hint: find the value of bond at t=0) PART 2: (2 POINTS) If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond Y? For Bond 2? (Hint: find the value of the bond 1 year from today). 5 7 . 9 10 15. 12 15 14 15 16