ynamic Systems has an outstanding bond that has a 1 000 par value and an 8 percent coupon rate interest is paid semiannually The

Question

ynamic Systems has an outstanding bond that has a 1 000 par value and an 8 percent coupon rate interest is paid semiannually The bond has 8 years remaining until it matures Today the going terest rate is 10 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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