Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds:

• Bond A has a 10% annual coupon, matures in 12 years, and has a $1,000 face value.
• Bond B has a 6% annual coupon, matures in 12 years, and has a $1,000 face value.
• Bond C has a 14% annual coupon, matures in 12 years, and has a $1,000 face value.

Each bond has a yield to maturity of 10%.

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any. If an answer is zero, enter "0".

1. Calculate the price of each of the three bonds. Round your answers to the nearest cent.

Price (Bond A): $ fill in the blank

Price (Bond B): $ fill in the blank

Price (Bond C): $ fill in the blank

1. Calculate the current yield for each of the three bonds. (Hint: The expected current yield is calculated as the annual interest divided by the price of the bond.) Round your answers to two decimal places.

Current yield (Bond A): fill in the blank

Current yield (Bond B): fill in the blank

Current yield (Bond C): fill in the blank

1. If the yield to maturity for each bond remains at 10%, what will be the price of each bond 1 year from now? Round your answers to the nearest cent.

Price (Bond A): $ fill in the blank

Price (Bond B): $ fill in the blank

Price (Bond C): $ fill in the blank

What is the expected capital gains yield for each bond? What is the expected total return for each bond? Round your answers to two decimal places.

	Bond A	Bond B	Bond C
Expected capital gains yield	fill in the blank	fill in the blank	fill in the blank
Expected total return	fill in the blank	fill in the blank	fill in the blank

1. Mr. Clark is considering another bond, Bond D. It has a 9% semiannual coupon and a $1,000 face value (i.e., it pays a $45 coupon every 6 months). Bond D is scheduled to mature in 8 years and has a price of $1,170. It is also callable in 6 years at a call price of $1,030.
   1. What is the bond's nominal yield to maturity? Round your answer to two decimal places.

fill in the blank

1. What is the bond's nominal yield to call? Round your answer to two decimal places.

fill in the blank

Calculate the price of each bond (A, B, and C) at the end of each year until maturity, assuming interest rates remain constant. Round your answers to the nearest cent.

Years Remaining
Until Maturity	Bond A	Bond B	Bond C
12		$ fill in the blank	$ fill in the blank	$ fill in the blank
11		$ fill in the blank	$ fill in the blank	$ fill in the blank
10		$ fill in the blank	$ fill in the blank	$ fill in the blank
9		$ fill in the blank	$ fill in the blank	$ fill in the blank
8		$ fill in the blank	$ fill in the blank	$ fill in the blank
7		$ fill in the blank	$ fill in the blank	$ fill in the blank
6		$ fill in the blank	$ fill in the blank	$ fill in the blank
5		$ fill in the blank	$ fill in the blank	$ fill in the blank
4		$ fill in the blank	$ fill in the blank	$ fill in the blank
3		$ fill in the blank	$ fill in the blank	$ fill in the blank
2		$ fill in the blank	$ fill in the blank	$ fill in the blank
1		$ fill in the blank	$ fill in the blank	$ fill in the blank
0		$ fill in the blank	$ fill in the blank	$ fill in the blank

1. What is the expected current yield for each bond in each year? Round your answers to two decimal places.

Years Remaining
Until Maturity	Bond A	Bond B	Bond C
12		fill in the blank	fill in the blank	fill in the blank
11		fill in the blank	fill in the blank	fill in the blank
10		fill in the blank	fill in the blank	fill in the blank
9		fill in the blank	fill in the blank	fill in the blank
8		fill in the blank	fill in the blank	fill in the blank
7		fill in the blank	fill in the blank	fill in the blank
6		fill in the blank	fill in the blank	fill in the blank
5		fill in the blank	fill in the blank	fill in the blank
4		fill in the blank	fill in the blank	fill in the blank
3		fill in the blank	fill in the blank	fill in the blank
2		fill in the blank	fill in the blank	fill in the blank
1		fill in the blank	fill in the blank	fill in the blank

1. What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places.

Years Remaining
Until Maturity	Bond A	Bond B	Bond C
12		fill in the blank	fill in the blank	fill in the blank
11		fill in the blank	fill in the blank	fill in the blank
10		fill in the blank	fill in the blank	fill in the blank
9		fill in the blank	fill in the blank	fill in the blank
8		fill in the blank	fill in the blank	fill in the blank
7		fill in the blank	fill in the blank	fill in the blank
6		fill in the blank	fill in the blank	fill in the blank
5		fill in the blank	fill in the blank	fill in the blank
4		fill in the blank	fill in the blank	fill in the blank
3		fill in the blank	fill in the blank	fill in the blank
2		fill in the blank	fill in the blank	fill in the blank
1		fill in the blank	fill in the blank	fill in the blank

1. What is the total return for each bond in each year? Round your answers to two decimal places.

Years Remaining
Until Maturity	Bond A	Bond B	Bond C
12		fill in the blank	fill in the blank	fill in the blank
11		fill in the blank	fill in the blank	fill in the blank
10		fill in the blank	fill in the blank	fill in the blank
9		fill in the blank	fill in the blank	fill in the blank
8		fill in the blank	fill in the blank	fill in the blank
7		fill in the blank	fill in the blank	fill in the blank
6		fill in the blank	fill in the blank	fill in the blank
5		fill in the blank	fill in the blank	fill in the blank
4		fill in the blank	fill in the blank	fill in the blank
3		fill in the blank	fill in the blank	fill in the blank
2		fill in the blank	fill in the blank	fill in the blank
1		fill in the blank	fill in the blank	fill in the blank