Lilly B. Clayton Enterprises' bonds currently sell for $1,125. The bond issue has 5 years until the bond matures, an annual coupon of $75, and a par value of $1,000. 1. What is the bond issue's yield to maturity (YTM)? 2. 3. A. 4.64% B. 6.67% C. 7.50% D. 7.85% E. 8.46% What is the bond issue's current yield? A. 4.64% B. 6.67% C. 6.91% D. 7.35% E. 8.46% What is their capital gain yield? A. positive 4.64% B. positive 2.62% C. positive 2.03% D. negative 2.62% E. negative 2.03% 4. What will Clayton bonds' market price be with 4 years remaining until is issue matures? A. $1,200. B. $1,177. C. $1,125. D. $1,096. E. $1,102. 5. If a bond is selling at a premium, that is the bond's current market price is greater than its par value, and the bond's required return is not expected to change, then the bond's price should be expected to decline to a lower price next year, and thus it's capital gain rate will be negative. A. TRUE B. FALSE