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Basic Manufacturing has an outstanding bond with a $1,000 par value and a 4.6 percent coupon rate. Interest is paid semiannually. The bond has nine

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Basic Manufacturing has an outstanding bond with a \$1,000 par value and a 4.6 percent coupon rate. Interest is paid semiannually. The bond has nine years remaining until it matures. The bond is currently selling for $930. The existing market yield is expected to remain the same for the remainder of the bond's life. Compute the (a) current yield and (b) capital gains yield that the bond will generate this year. (LO 6-5)

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