A bond has

5

years to maturity, a coupon rate of

14.5%,

and a face value of

$1,000.

The yield to maturity is

6.7%.

Assume annual compounding. What is the current price of the bond, the coupon yield, and the capital gain yield? Also, what will be the price of the bond when it has

4

years to maturity (one year from today) and what is the percentage increase/decrease in price during the year? (Note: use negative signs to indicate decreases and assume that the yield to maturity will remain constant over the one-year period.)

What is The price of the bond ? (Round to the nearest cent.)

What is The coupon yield of the bond? (Round to four decimal places.)

what is The capital gain yield?(Round to four decimal places.)

what is The price of the bond one year later?(Round to the nearest cent.)

what is The percentage change in price? (Round to four decimal places.)