Question $6$

$14$ pts

As with most bonds, consider a bond with a face value of $$1,000.$ The bond's maturity is $15$ years, the coupon rate is $5\%$ paid semiannually, and the discount rate is $15\%.$

What is the estimated value of this bond today?

Enter your answer in terms of dollars, rounded to the nearest cent, and without the dollar sign $(\text{'}$ $ $\text{'}).$ So$,$ for example, if your answer is $$546\mathrm{.}3456,$ then enter $546\mathrm{.}35$

Question $7$

$14$ pts

A bond is currently trading at a YTM of $10\%.$ We also know that its market price is $$853,$ and that its coupon rate is $5\%.$ What is the bond's expected Capital Gains Yield?

Enter your answer as a percentage, without the $\text{'}\%\text{'}$ sign, and rounded to two decimals. For example, if your answer is $0\mathrm{.}031416,$ which is equivalent to $3\mathrm{.}1416\%,$ just enter $3\mathrm{.}14$