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a. What are the bond's nominal yield to meturity and its nominal yield to calr? Do not round istermediate calculations. Round your answers to two

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a. What are the bond's nominal yield to meturity and its nominal yield to calr? Do not round istermediate calculations. Round your answers to two secimal ploces. YTM: YTC:- Wosild an investor be mare likely to earn the YTM or the YTC? b. What is the current yield? (Mint: Refer to Foothote 6 for the definition of the current yleid and to Table 7.1) Round your answer to two decimal places: % Is this yield affected by whether the bond is lkely to be called? 1. If the bond is called, the capital gains yield will remain the same but the current vield wil be different. II. If the bond is called, the current yield and the capital gains yield will both be different. III. If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate will be different. TV. If the bond is called, the current yield wall remein the same but the capital gains vield will be different. V. If the bond is called, the current yield and the capital gains yeld will remain the same. c. What is the expected capital gains (or loss) yeld for the coming year? Use amounts calculated in above tequirements far caiculation, if required. Negative value thould be lindicated by a minus sign. Round your answer to two decimal places. Is this yield dependent an whether the botid is expected to be called? 1. The expected capital gains (or loss) yield for the coming year does not depend on whether or not the bond is expected to be called. If. If the bond is expected to be called, the appropriate expected total retum is the YTM. III. If the bond is not expected to be called, the appropriate expected total return is the VIC. IV. If the bond is expected to be calied, the appropriate efpected total retum will not change. V. The expected capital gains (or loss) yeld for the coming year depends on whether of not the bond is expected to be called

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