a. Consider a 8% coupon, 30-year maturity bond with par value of $1.000 paying 60 semiannual coupon payments of $40 each. The current yield for this bond is 8%. Estimate capital gains if the yield goes to 10%. b. A 20-year maturity 9 % semiannual coupon rate is callable in 7 years at a call price of $1,050. The bond currently sells at a yield to maturity of 8%, what is yield to call