The Pennington Corporation issued a new series of bonds 23 years ago. The bonds were sold at par value, which is $1,000, have a 12 percent coupon, and mature 6 years from today. Coupon payments are made semiannually (on June 30 and December 31).

1. What was the YTM on Penningtons bonds when they were issued?

2. What was the price of the bond five years after they were issued assuming that the level of interest rates had fallen to 10 percent?

3. Find the current yield and capital gains yield on the bond five years after issue, given the price determined in part 2.

4. Suppose that the bonds currently sell for $916.42. What is the bonds YTM?

5. What are the bonds current yield and capital gains yield?