(solution) The Pennington Corporation issued bonds on January 1, 1987

(solution) The Pennington Corporation issued bonds on January 1, 1987

The Pennington Corporation issued bonds on January 1, 1987. The bonds were sold at par, had 12% annual coupon, paid semi-annually, and mature on December 31, 2016.A) What was the yield-to-maturity on the date the bonds were issued?B) What was the price on January 1, 1992, assuming interest rates have fallen to 10%?C) Find the current yield, capital gains/losses yield and total yield on January 1, 1992?