Bond P is a premium bond with a coupon rate of 8 percent. Bond D is a discount bond with a coupon rate of 6 percent. Both bonds make annual payments, have a YTM of 7 percent, and have five years to maturity.

Requirement 1:

What is the current yield for bond P? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current yield

%

Requirement 2:

What is the current yield for bond D? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current yield

%

Requirement 3:

If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)