Suppose, three years ago, you purchased a 15-year coupon bond paying 5% interest annually with a face value of $1000. It is now three years later and you just received an interest payment yesterday (the bond matures in exactly twelve years). 1 You look in the paper and the yield on comparable debt is 6%. What is the bond currently worth? A $1,340 B $916 C $864 D $971 E none of them 2 If you bought it at Par value, did you have a capital gain or loss? Also, if the yield decreased to 4.5%, would you have a capital gain or loss, or could you tell? A Capital Gain; Capital Loss B none of them C Capital Loss; Capital Loss D Capital Gain; Capital Gain E Capital Loss; Capital Gain 3 What is the Current Yield? A 5.7% or more B Between 5.4% and 5.7% C Less than 4.8% D Between 5.1% and 5.4% E Between 4.8% and 5.1%