Assume today is January 1, 2021. The Pennington Corporation issued a new series of bonds on January 1, 2011 (ten years ago). The bonds were sold at a price of $1100 (the par value being $1000), had a 6% coupon, and had the original maturity period of 25 years (i.e., maturity date = January 1, 2036). Coupon payments are made monthly, at the end of each calendar month.

a. What was the yield to maturity on the bond at the time of the issue (i.e., on 1/1/2011)?

b. What would the price of the bond be today (1/1/2021) if the current market interest rate (I/Y) is 7%?

c. What would the current yield and the capital gains yield of the bond be as of today (1/1/2021)?