and Study Tools ptions access Tips access Tips Mack E Prebless Wats-Through Last year Carson Industries issued a 10-year, 13% semannual coupon bond at per val of $1.000 Currently, the bond can be red 11,065 and sells for $1.270 a. What are the bond's nominal yield to maturity and its nominal yield to cart Do not round intermediate calculations Round your answers to be decima places YTH VTC Would an investor be more likely to eam the YTM or the YTC Select What is the current yeis? (Hint: Refer to Fustrated for the definition of the current yield and to Table 71) Round your answer to two decimal places Is this yield affected by whether the bond is likely to be called? L. If the bond is called, the capital gains yield will remain the same but the current yield will be different 11. If the bond is called, the current yield and the capital gains yield will both be offerent 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 IV. If the bond is called, the current yield will remain the same but the capital gain yield will be different. V. If the band is called, the current yield and the capital gains yield will remain the same -Select- c. What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calculation, if required. Negative value should be indicated by a minus sign. Round your answer to two decimal places. Is this yield dependent on whether the bond 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 ca II. If the bond is expected to be called, the appropriate expected total return is the YTH. III. If the bond is not expected to be called, the appropriate expected total return is the VTC IV. If the bond is expected to be called, the appropriate expected total return will not change V. The expected capital gains (or loss) yield for the coming year depends on whether or not the bond is expected to be called. AZ
