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ebook Problem Walk Through Pelzer Printing Inc. has bonds outstanding with 9 years letto maturity. The bonds have an annual coupon rate and were issued

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ebook Problem Walk Through Pelzer Printing Inc. has bonds outstanding with 9 years letto maturity. The bonds have an annual coupon rate and were issued 1 year ago at their par value of $1,000 However, due to changes in interest rates, the band's market price has talento $908.30. The capital gains yield last year was 9.17% What is the yield to maturity Do not round intermediate calculations. Round your answer to two decimal places b. For the coming year, what are the expected current and capital gains yields (Hant: Refer to Footnotes for the definition of the current yeld and to Table 7.1.) Do not round intermediate calculations. Round you to two decimal places Expected current yield: Expected capital gains yield: c. Will the actual realized yields becual to the expected yields ir interest rates change? If not, how will they differ? L. As long as proved coupon payments are made the current yeld will not change art 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 YTM 11. As long as promised coupon payments are made, the current yleld 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 should the YTM ILL. As long as promised coupon payments are made, the current yield will change as 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 mates change they use the end-of-year price to change and thus the r ed capital gains yeld to change. As a result, the reared return to investors V. As long as promised coupon payments are made, the current yield wil change as a result of changing interest rates. However, changing rates wit cause the price to change and as a result, the realized return to investors will differ from the YTMY

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