Using the PV function in Excel (or the equivalent in another spreadsheet or business calculator), to calculate the relevant bond prices, what is the capital gain or loss from an initial yield of 5 percent on:

(a) a 5-year pure discount bond with a $100 face value going to a yield of

(i) 4 percent or (ii) 6 percent?

(b) a 5-year bond with a face value of $100 and 5-percent annual coupons going to a yield of (i) 4 percent or (ii) 6 percent?

Comment.
[See the Excel hint for Problem 6.22.]