Question: How to do part 2 please. Can be done on excel. Intro One year ago, Gangnam Inc. issued a 12-year, 4% semiannual coupon bond at

How to do part 2 please. Can be done on excel.

Intro One year ago, Gangnam Inc. issued a 12-year, 4% semiannual coupon bond at its par value of $1,000. The bond can be called in 8 years at a price of $1,100 and it now sells for $655.39. The bond has a yield to maturity of 9%. IB Attempt 3/10 for 1.35 pts. Part 1 What is the current yield? ,061 Correct Current yield = Annual Interest / Bond price = Coupon rate. Face value / Bond price = 0.04 1,000 / 655.39 = 0.061 - Attempt 4/10 for 1.28 pts. Part 2 What is the expected capital gains yield for the coming year? 4+ decimals

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