What is the expected capital gains yield over the next year

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Bond P is a premium bond that carries a 10% coupon rate. A separate bond-Bond D is a discount bond and has a 4% coupon rate. Each of these bonds makes an annual payment (not semiannual) and have a 7% YTM with 10 full years until they mature. Assume that market interest rates do not change, What is the expected capital gains yield over the next year for both Bond P and Bond D.

Show all work, not allowed to use calculators or excel functions. I am having a lot of trouble in solving this. I have the right set up, but can not figure out the algebra behind it.

Reference no: EM131027118

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