The Timberlake-Jackson Wardrobe Co. has 10.3 percent coupon bonds on the market with eight years left to maturity. The bonds make annual payments.

Required: If the bond currently sells for $1,132.17, what is its YTM?

Bond P is a premium bond with a coupon rate of 9.5 percent. Bond D is a discount bond with a coupon rate of 5.5 percent. Both bonds make annual payments, have a YTM of 7.5 percent, and have ten years to maturity.

Requirement 1:

What is the current yield for bond P? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current yield

%

Requirement 2:

What is the current yield for bond D? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current yield

%

Requirement 3:

If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P?(Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)

Capital gains yield

%

Requirement 4:

If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond D?(Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)