Problem 5: Find a capital gain yield (in %) on a 15-year 5% coupon (paid annually) bond with a YTM of 7% during the first year Problem 6: Assume a 20-year bond with a coupon rate of c0 is selling at a discount. If its YTM does not change over time, then next year. A) Its price will decrease B) Its price will be the same as this year C) Its price will increase but the bond will still be selling at a discount D) Its price will increase but there is not enough information to say whether the bond will still be selling at a discount E) Its price will increase and the bond will be selling at par F) Its price will increase and the bond will be selling at a premium 2