1. A bond offers a coupon rate of 3%, paid annually, and has a maturity of 11 years. If the current yield is 8%. If the market conditions remain unchanged, what should the price of the bond be in 1 year?
2. A bond offers a coupon rate of 6%, paid annually, and has a maturity of 18 years. If the current market yield is 4%. If the market conditions remain unchanged, what should the Capital Gains Yield of the bond?