Bond P:
Coupon rate
Yield to maturity
Settlement date
Maturity date
Face value			use $1,000 as the face value for both bonds
# of coupons per year
Bond D:
Coupon rate
Yield to maturity
Settlement date
Maturity date
Face value
# of coupons per year
Date one year from now

Components of Bond Returns. Bond P is a premium bond with a coupon rate of 8.5 percent. Bond D is a discount bond with a coupon rate of 5.5 percent. Both bonds make annual payments, have a YTM of 7 percent, a par value of $1,000, and have five years to maturity. What is the current yield for Bond P? For Bond D? If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P? For Bond D? Explain your answers and the interrelationships among the various types of yields