Johnnie received some bonds from his grandmother. The bonds have 15.5 years to maturity, a YTM of 7.6 percent, a par value of $1,000, and a current price of $1,063. They also make semiannual payments. He is unsure on the coupon rate and so has enlisted your help.

What must the coupon rate be on the bonds that Johnnie received?

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.)