Assume you have two bonds. Bond A has 25 years to maturity, a 14% annual coupon rate, and a maturity value of $1,000. Bond B has 25 year to maturity, a 6% annual coupon rate and a maturity value of $1,000. Both bonds sell at a yield to maturity of 10%.

1) Compute the price of the bonds at time zero (give answer in dollars and cents).
A:


B:


2) Compute the current yield on both bonds (give answer to two decimal places as a percent, I.e. . 1042 = 10.42%).

A:


B:


3) Compute the expected capital gain yield on both bonds (give answer to two decimal places as a percent, I.e. . 1042 = 10.42%).


A:


B: