Current yield (Bond A): Current yield (Bond B): Current yield (Bond C): 8.37% 8.00% 7.57% d. 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): \$ 1071.39 Price (Bond B): \$ 1000 Price (Bond C): \$ 928.61 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. 5 years at a call price of $1,040. 1. What is the bond's nominal yield to maturity? Round your answer to two decimal places. 5.83% 2. What is the bond's nominal yield to call? Round your answer to two decimal places. 5.26% 3. 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 greater than the YTC, Mr. Clark should expect the bond to be called. Consequently, he would earn YTC . f. Explain briefly the difference between price risk and reinvestment risk. This risk of a decline in bond values due to an increase in interest rates is called price risk The risk of an income decline due to a drop in interest rates is called reinvestment risk