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Bond P is a premium bond with a 11 percent coupon. Bond D is a 6 percent coupon bond currently selling at a discount. Both
Bond P is a premium bond with a 11 percent coupon. Bond D is a 6 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 8 percent, and have 10 years to maturity. What is the current yield for bond P and bond D ? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P and bond D ? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places.)
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