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1. An investor made the following bond transaction. Two years ago, an investor purchased a 3% coupon rate, $1,000 par value, 11-year bond with semi-annual
1. An investor made the following bond transaction. Two years ago, an investor purchased a 3% coupon rate, $1,000 par value, 11-year bond with semi-annual payments, that at the time was yielding 4.0%. She sold the bond two years later after she bought it, when it was yielding 5.0%. What was the investor's capital gain yield and interest yield for the 2-year period he held the bond? (10 Marks)
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