Suppose Delta Company issued bonds with a 15-year maturity, a Rs. 1,000 par value, a 12 percent coupon rate, and semiannual interest payments. If actual price of the bond in the market is Rs 900, compute yield to maturity, current yield and capital gain yield.

To compute the yield to maturity, current yield, and capital gain yield for the Delta Company bonds, we first need to understand the formulas and calculations involved.

1. Yield to Maturity (YTM):
The yield to maturity represents the total return an investor will receive from the bond if held until maturity. It takes into account both the annual interest payments (coupon rate) and any potential capital gain or loss from price fluctuations. YTM is calculated by solving the bond pricing formula:

Market Price = (Coupon Payment / (1 + Yield)^1) + (Coupon Payment / (1 + Yield)^2) + ... + ((Coupon Payment + Par Value) / (1 + Yield)^n)

Where:
- Market Price: The actual price of the bond in the market (given as Rs 900)
- Coupon Payment: The semiannual interest payment (12 percent of the par value / 2)
- Yield: The yield to maturity (what we need to calculate)
- n: The total number of coupon payments until maturity (2 x 15 = 30)

2. Current Yield:
The current yield is a simple measure of the annual return from interest payments relative to the bond's current market price. It is calculated by dividing the annual interest payment (coupon rate) by the market price:

Current Yield = (Coupon Payment / Market Price) x 100

3. Capital Gain Yield:
The capital gain yield represents the change in the bond's price relative to the initial investment. It is calculated by subtracting the purchase price from the redemption price (par value in this case) and dividing it by the purchase price:

Capital Gain Yield = ((Par Value - Purchase Price) / Purchase Price) x 100

Now, let's calculate each of these values:

1. YTM:
To calculate the YTM, we need to solve the bond pricing formula iteratively or use financial calculators or spreadsheets. However, since this is a time-consuming process, I'll assume you have access to a financial calculator or spreadsheet software. The approximate YTM for the given bond would be around 13.7%.

2. Current Yield:
The annual interest payment (Coupon Payment) can be calculated as (12% of Rs 1,000) / 2 = Rs 60. The current yield is therefore:

Current Yield = (Rs 60 / Rs 900) x 100 = 6.67%

3. Capital Gain Yield:
The purchase price is given as Rs 900, and the par value is Rs 1,000. Therefore, the capital gain yield is:

Capital Gain Yield = ((Rs 1,000 - Rs 900) / Rs 900) x 100 = 11.11%

So, the approximate values for the yield to maturity, current yield, and capital gain yield for the Delta Company bonds are 13.7%, 6.67%, and 11.11%, respectively.