Check My Work (3 remaining) ebook Problem Walk-Through Pelzer Printing Inc. has bonds outstanding with 10 years left to matunty. The bonds have a 9% annual coupon rate and were issued 1 year ago at their par value of $1,000 However, due to changes in interest rates, the bond's market price has fallen to $950.70. The capital gains Weld last year was 4,939 a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two deomal places b. For the coming year, what are the expected current and capital gains yields? Het Refer to Footnote for the definition of the current yield and to Table 7.1.) Do not round intermediate calculations. Round your answers to two decimal places Expected current yield: 9 Expected capital gains yield: c. Will the actual realized yields be equal to the expected yields of interest rates change? If not, how well they differ? 1. As long as promised coupon payments are made, the current yield will not change as a result of changing interest rates. However changing rates will cause the price to change and as a result, the realized return to investors should equal the YTH II. As long as promised coupon payments are made the current yield wil dange as a result of changing winterest rates. However, changing rates will cause the price to change and as a result, the realized return to investors should equal the YTM III. As long as promised coupon ents are made, the current yield will changes a result of changing interest rates. However, changing rates will not cause the price to change and as a result, the realized return to investors should equal the YTM IV. As rates change they will cause the end-of-year price to change and thus the realized capital gains yield to change. As a result, the realized return to investors will differ from the YTM V. As long as promised coupon payments are made the current yield will change as a result of changing interest rates. However, changing rates will cause the price to change and as a result, the realized return to investors will differ from the YTM -Select- v