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 an $8\%$ annual coupon, matures in $12$ years, and has a $$1,000$ face value.

Bond B has a $9\%$ annual coupon, matures in $12$ years, and has a $$1,000$ face value.

Bond C has a $7\%$ annual coupon, matures in $12$ years, and has a $$1,000$ face value.

Each bond has a yield to maturity of $8\%.$

A$.$

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$)$: $?\%$

Current yield $($Bond B$)$: $?\%$

Current yield $($Bond C$)$: $?\%$

B$.$

If the yield to maturity for each bond remains at $8\%,$ what will be the price of each bond $1$ year from now? Round your answers to the nearest cent.

Price $($Bond A$)$: $ $?$

Price $($Bond B$)$: $ $?$

Price $($Bond C$)$: $ $?$

C$.$

What is the expected capital gains yield for each bond? A$,$ B$,$ C

What is the expected total return for each bond? A$,$ B$,$ C

Round your answers to two decimal places.

D$.$

Mr$.$ Clark is considering another bond, Bond D$.$ It has an $8\%$ semiannual coupon and a $$1,000$ face value $($i$.$e$.,$ it pays a $$40$ coupon every $6$ months$).$ Bond D is scheduled to mature in $9$ years and has a price of $$1,150.$ It is also callable in $5$ years at a call price of $$1,040.$

E$.$

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

F$.$

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

G$.$

If Mr$.$ Clark were to purchase this bond, would he be more likely to receive the yield to maturity or yield to call? Explain your answer.

Because the YTM is $($less than$/$ greater than$/$ equal to$)$ the YTC$,$ Mr$.$ Clark $($should $/$ should not$)$

expect the bond to be called. Consequently, he would earn $($YTC $/$ YTM$)$

H$.$

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.

$($Year until maturity from $12$ to $0$ for each bond$)$

What is the expected current yield for each bond in each year? Round your answers to two decimal places. $($Year until maturity from $12$ to $0$ for each bond$)$

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

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