1. Investor A purchased one of Company Xs bonds last year when the market interest rate of similar-risk bonds was 6%. When he purchased the bond, it had seven years remaining until maturity. The bonds coupon rate of interest (paid semi-annually) is 5% and its maturity value is $1,000. Today, the market rate on similar risk bonds as the one Investor A purchased one year ago is 4%.
   1. If he were to sell the bond today, what return would he earn?
   2. What portion of this return represents the capital gain and what portion represents the current yield?