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ast year Cansan Industries issued a 10 yeac, 14% semiannusi coupon bond at its par value of $1,000, Currently, the bond can be called in

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ast year Cansan Industries issued a 10 yeac, 14% semiannusi coupon bond at its par value of $1,000, Currently, the bond can be called in 6 years at a price of $1,070 and it sells ar 51,350 a. What are the bond's nominal yield to maturity and its nominal yeld to call? Do not round intermediate cakculations. Round your ansmers to two decimal plachs. YTM: Would an investor be more ikely to earn the YTM or the YTC? b. What is the current yield? (Hint: Refer to footnote 6 for the defintion of the current yield and to table 7.1) Round your answer to two decimal places. Is this yieid affected by whether the bond is likely to be called? 1. 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 yieid and the capital gains yield will both be different. Itt. If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate wal be different. FV. If the band is called, the current yleld will remain the same but the capital gains yield will be different. v. If the bond is called, the current yield and the capital gains yield will remain the same. 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. 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 slgn. Round your answer to two decimal places. \%o 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 whather or not the bond is expected to be called. II. If the bond is expected to be called, the appropriate expected total return is the YTM. III. If the bond is not expected to be called, the appropriate expected total return is the YTc. IV. If the bond is expected to be called, the appropriate expected total return will not change. V. The expected capital gains (or loss) yleld for the coming year depends on whether or not the bond is expected to be called

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