Problem $6-34$ Components of Bond Returns $[$LO $2]$

Bond $P$ is a premium bond with a coupon rate of $8\mathrm{.}2$ percent. Bond $D$ is a discount bond with a coupon rate of $4\mathrm{.}2$ percent. Both bonds make annual payments, a YTM of $6\mathrm{.}2$ percent, a par value of $$1,000,$ and have seven years to maturity.

a$.$ What is the current yield for Bond P$?$ For Bond D$?$ Note: The current yield is the annual coupon rate divided by the price.

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P$?$ For Bond D$?$ Note: As time goes by the price of a discount bond rises and the price of a premium bond falls. The capital gains yield is simply the return from a bond rising or falling. It is $($ending price $-$ beginning price$)/$ beginning price or ending price$/$beginning price $-1.$ Note: 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$.,32\mathrm{.}16.$

$\backslash$table$[[,$Bond P$,$Bond D$,]$