A. $1,000-face-value bond has a 10% coupon rate, its current price is $960, and it is expected to increase to $980 next year. Calculate the current yield, the expected rate of capital gains, and the expected rate of return.

B.What would be the face value, in terms of its price, of a U.S. T-bill on the secondary market with 3 years and 3 months until it matures?