9) A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $1,050. (Assume that the bond has just been issued.)
What is the bond's yield to maturity? Round your answer to two decimal places.
%

What is the bond's current yield? Round your answer to two decimal places.
%

What is the bond's capital gain or loss yield? Round your answer to two decimal places.
%

What is the bond's yield to call? Round your answer to two decimal places.

10) Absalom Motors's 15% coupon rate, semiannual payment, $1,000 par value bonds that mature in 20 years are callable 4 years from now at a price of $1,050. The bonds sell at a price of $1,205.42, and the yield curve is flat. Assuming that interest rates in the economy are expected to remain at their current level, what is the best estimate of the nominal interest rate on new bonds? Round your answer to two decimal places.

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