. Currently, the bond can be cailed in 6 years at a price of $1,075 and a. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: rim: \% \% re: % Would an investor be more likely to earn the YTM or the YTC? b. What is the current yield? (Hint: Refer to footnote 6 for the definition of the current yield and to Table 7.1) Round your answer to two decimai places. W Is this yield affected by whether the bond is likely to be called? 1. If the bond is caled, the capital gains yield will remain the same but the current yleid will be different. II. If the bond is called, the current yield and the capital gains yield will both be different. III. If the bond is called, the current yinld and the capital gains yield will remain the seme but the coupon rate will be different. IV. If the bond is called, the current yield will remain the same but the capital gains yieid will be different. V. If the bond is calied, the current yield and the capital gains yield will remain the same. c. What is the expected capital gains (or loss) vield for the coming yean use amounts calculated in above requirements for caiculation, if required, Negative value shoul indicated by a minus sign. Round your answer to two decimat places. \% Is this yieid dependent on whether the bend is expected to be called? 1. The expected capital gains (or foss) yieid for the coming year does not depend on whether or not the bond z expected to be called. II. If the bond is expected to be called, the appropriate expected toaal return is the YTM. III. If the bond is not expected to be calied, 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 ioss) yield for the coming year depends on whether or not the bond is expected to be calied