Mining Printing Inc. has bonds outstanding with 10 years left to maturity. The bonds have a 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $950.70. The capital gains yield last year was -4.93%. 1. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places 2.For the coming year, what are the expected current and capital gains yields? Do not round intermediate calculations. Round your answers to two decimal places.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 21P: Bond Valuation and Changes in Maturity and Required Returns Suppose Hillard Manufacturing sold an...
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Mining Printing Inc. has bonds outstanding with 10 years left to maturity. The bonds have a 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $950.70. The capital gains yield last year was -4.93%.

1. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places

2.For the coming year, what are the expected current and capital gains yields? Do not round intermediate calculations. Round your answers to two decimal places.

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