David Bowie bonds pay their coupons from royalties generated by sales of David Bowie's past recordings. The bonds have 9 years remaining to maturity, pay annual coupons (yesterday) of $70, and have a face value of $1,000. The current price f the bonds is $778.52 to yield 11%. What is the capital gain percentage increase for the coming year if the yield to maturity remains constant? The capital gain percentage increase for the coming year is % (Round to two decimal places.) Consider a 3-year U.S. Government bond. The bond pays $110 coupons at the end of each of the next three years. At the end of the third year, the holder receives the face value of $1,000. The cash flows from the bond are shown in the table below. Price the bond at year 0, then again at year 1 (after the first coupon is paid), and then calculate the percentage change in price. Assume that the yield is constant throughout the year at 7%. Year 1 2 3 Cash Flow $110 $110 $1,110 What is the price of the bond at year 0? $ (Round to the nearest cent.) The market expects the 1-year spot rate (starting today) to be 5% and next year's 1-year spot rate to be 9.8%. According to the expectations theory, what is the 2-year spot rate (starting today)? The 2-year spot rate is %. (Round to two decimal places.)