1) Bond P is a premium bond with a coupon rate of 13 percent. Bond D has a coupon rate of 8 percent and is currently selling at a discount. Both bonds make annual payments, have a YTM of 10 percent, and have six years to maturity. What is the current yield for bond P and bond D?

2) If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P and bond D?