Question: Dynamic Systems has an outstanding bond that has a $1,000 par value and a 5 percent coupon rate. Interest is paid semiannually . The bond

Dynamic Systems has an outstanding bond that has a $1,000 par value and a 5 percent coupon rate. Interest is paid semiannually. The bond has 9 years remaining until it matures. Today the going interest rate is 6 percent, and it is expected to remain at this level for many years in the future.

a/ Compute the current yield. Do not round intermediate calculations. Round your answer to two decimal places

b/ Compute the capital gains yield that the bond will generate this year. Do not round intermediate calculations. Round your answer to two decimal places.

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