Collingwood Homes has a bond issue outstanding that pays a 5.0% semi-annual coupon and matures in 20 years. The bonds have a par value of $1,000 and a market price of $1,100.00.

What is the Bonds Current Yield? ________________________

What is the Bonds Capital Gain Yield? _____________________

If you expect inflation to be 3%/year over the life of the bond, what is the expected EXACT Real Rate of Return on this investment? ________________