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One year ago, Gangnam Inc. issued a 12-year, 3% coupon bond at its par value of $1,000. This bond makes annual, not semi-annual payments. The

One year ago, Gangnam Inc. issued a 12-year, 3% coupon bond at its par value of $1,000. This bond makes annual, not semi-annual payments. The bond can be called in 8 years at a price of $1,100 and it now sells for $545.35. The bond has a yield to maturity of 10%.

If interest rates do not change over the next year, what will be the capital gains yield for the coming year? Enter your answer as a decimal.

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