If a bond's coupon rate is less than its YTM, then the bond is selling at a discount.

If a bond's coupon rate is more than its YTM, then the bond is selling at a premium.

If a bond's coupon rate is equal to its YTM, then the bond is selling at par.

1. Can the guidelines above apply to "bond funds" by comparing the bond fund SEC yield to its Average Coupon ?

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For 2011, the Vanguard Total Bond Market Index Fund (AdmShrs), had a Capital Return of 4.26%.

For 2012 its Capital Return was 1.42%.

2. If interest rates account for the Income Return, then what explains or accounts for the Capital Return portion of a bond fund ?