Consider two bonds Both bonds make annual payments, have a YTM of 6 percent, and have four years to maturity Bond X is a premium bond with a coupon rate of 9 percent Bond Z has a coupon rate of 4 percent and is currently selling at a discount a What is the current yield for Bond X and Bond Z (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e g , 32 16 ) b If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond X and Bond Z (A negative answer should be indicated by a minus sign Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e g , 32 16 )

Question

Consider two bonds  Both bonds make annual payments, have a YTM of 6 percent, and have four years to maturity  Bond X is a premium bond with a coupon rate of 9 percent  Bond Z has a coupon rate of 4 percent and is currently selling at a discount  a  What is the current yield for Bond X and Bond Z  (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e g , 32 16 ) b  If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond X and Bond Z  (A negative answer should be indicated by a minus sign  Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e g , 32 16 )

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a.	What is the current yield for Bond X and Bond Z? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond X and Bond Z? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Question

Consider two bonds. Both bonds make annual payments, have a YTM of 6 percent, and have four years to maturity. Bond X is a premium

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