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A bond hasyears to maturity, a coupon rate of , and a face value of . The yield to maturity is . Assume annual compounding.

A bond hasyears to maturity, a coupon rate of , and a face value of . The yield to maturity is . 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 hasyears 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.)

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