Suppose, six years ago, you purchased a 15-year coupon bond paying 6% interest annually with a face value of $1000. It is now six years later and you just received an interest payment yesterday (the bond matures in exactly nine years).

a)If you bought it at Par value, did you have a capital gain or loss? Also, if the yield increased to 7%, would you have a capital gain or loss, or could you tell?

b)What is the Current Yield?