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b. What is the current yield? (hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Round your answer

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b. What is the current yield? (hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Round your answer to two decimai places. 4 is this yield aflected by whether the bond is likely to be called? 1. If the bond is colled, the copital gains yieid will remain the same but the current yleld will be different. 11. If the bond is calied, the current vield and the capital gains vield wilt both be different. Iii. If the bond is called, the current vield and the capital gains yeld wili remain the same but the covoon rate wilf be stferent. IV, If the bond is called; the current yield wil remain the same but the cogrtal gains riald was be derterant. V. If the bond is calied, the current yield and the capital gains yield will remain the same. c. What is the expected capital gains (or loss) yieid for the coming ytar? Use amousts calculated in above recuirements for calculation, if reevired. Negative value shou indicated by a minus sigh. Round your answer to two decimat places. Is this vield dependent on whether the bond is expocted to be calked? 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 as the YTM. 1i. If the bond is not expected to be calied, the appropriate expected total return is the VTC. IV. If the bond is expected to be callod, the appropriate expocted total return will not change. V. The expected copital gains (or loss) yeid for the coming year depends on whether or not the boed is expected to be called

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