1. In 2022, you buy a 10% coupon $1,000-face-value bond at a 12% interest rate. Coupon is paid annually. In 2023, the interest rate on newly issued comparable bonds in the market falls from 12% to 6%. Fill out the following table for the one-year return (from 2022 to 2023) on your coupon bond assuming different maturities.

Here is the hint to help with the question-Here is the chart that needs to be completed

Bond Purchase Price (in 2022) Bond Price Next Year (In 2023) Years to Maturity when Bond is Purchased (in 2022) Current Yield (In 2022,%) Pt Rate of Capital Gain (%) Pt+1-Pt Pt Rate of Return (%) = Current Yield + Rate of Capital Gain YTM > coupon rate, which indicates P2022