Today is a day in July 2525 and a bond with annual coupon rate of 5.60% just yesterday paid a coupon. The bond matures in July 2541 and its quoted bond price is 78.55 percent of par (semiannual compounding). Find the current yield and capital gains yield.
a. the current yield equals 5.39% and capital gains yield is 1.00%
b. the current yield equals 7.13% and capital gains yield is 0.87%
c. the current yield equals 6.20% and capital gains yield is 1.00%
d. the current yield equals 7.13% and capital gains yield is 1.00%
e. the current yield equals 6.20% and capital gains yield is 0.87%