Eight years ago, Over-the -Top Trampolines issued a 15-year bond with a $1,000 par value and a 6 percent coupon rate (interest is paid annually). Today the going rate of interest on similar bonds is 6 percent.
(a) What is the bond's current value? If the market rate stays at 6 percent for the remainder of the bond's life, what
(b) current yield and
(c) capital gains yield will bondholders receive during the next two years (i.e., Years 9 and 10)?