Assume that a 20-year, 5% annual coupon bond with semiannual payments has a par value of $1,000. Assume the bond can be called at the ten-year mark (i.e., in 10 years) at a call price of $1,050. The bond currently sells for $950. Employ the excel file to answer the following questions:

1. Calculate the current yield as the Annual Coupon payment divided by Current Price. Then calculate the Capital Gain or Loss Yield. Capital Gain or Loss Yield = Annualized YTM - Current Yield (7 Points)