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BOND YIELDS Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the band can be called

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BOND YIELDS Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the band can be called in 6 years at a price of $1,065 and it sells for $1,270 a. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places What is the band's nominal yield to call? Do not found intermediate calculations. Round your answer to two decimal places, Would an investor be more likely to earn the YTM or the YTC? Since the YIM is above the VIC, the bond is likely to be called b. What is the current yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places. Is this yield affected by whether the bond is likely to be called? 1. If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate will be different 11. If the bond is called, the current yield will remain the same but the capital gains yleld will be different III. If the bond is called, the current yield and the capital gains yield will remain the same IV. If the bond is called, the capital gains vield will remain the same but the current yield will be different If the bond is called the current yield and the capital gains yield will both be different c. What is the expected capital gains (or loss) yleld for the coming year? Use amounts calculated in above regu remonts answer to two decimal places. Enter a los percentage, if any, with a minus sign. Is this yield dependent on whether the bond is expected to be called? 1. The expected capital gains (or loss) Vield for the coming year does not depend on whether or not the bond is expected to be called 11. If the bond is expected to be called, the appropriate expected total return is the YTM II. 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) yield for the coming year depends on whether or not the bond is expected to be called

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