1. A 12-year, $1,000 par. value, 8% annual coupon bond currently sells for %985. If the market rate of interest remains constant, what is the expected capital gain yield for the following year?
A. -0.25%, b. 0.08%, C.0.25%
2. A 12 year, 9% annaul coupon bond has a yield to maturity of 7.5% and a par value of $1,000 . The bond can be called four years from now at a call price of $1050. What is the bond's yield to call?
A. 6.73%
B. 7.10%
C. 7.50%
D. 11.86%
E. 13.45%