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eBook Problem Walkthrough Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of $1,000. Currently, the band can be

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eBook Problem Walkthrough Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of $1,000. Currently, the band can be called in 6 years at a price of $1,070 and it sells for $1,280 2. What are the band's nominal veld to maturity and its nominal vied to cal? Do not found intermediate calculations. Round your answers to two decimal places. YTM: 14 % VTC Would an investor be more likely to cam the YTM or the YTC? . What the current ydint afer to Footer 6 for the definition of the current vald and to Table 7.1) Round your awer to two decimal places Is this yield affected by whether the bond is to be called? 1. If the band is called the capital gains yield will remain the same but the current yield wil be different II. If the bond is called the current yield and the capital Ohins yield will both be different 1. If the bond is called the current yield and the capital gains yield will remain the same but the coupon rate will be different IV. If the bond is called the current yield will remain the same but the capital gains yield will be diferent V. If the bond is called the current yield and the capital gains yield will remain the same What is the spected capital gains for lon) yield for the coming year? Use amounts calculated in above roulements for calculation, it required. Negative value should be indicated by a minusu places 4 Is this is dependent on whether the bond is expected to be called 1. The expected capital gains (or loss) Vield for the coming year does not depend on whether or not the bond is expected to be called 11. If the bond is expected to be called, the appropriate expected total return is the YTM 1111f the band is not expected to be called the appropriate expected total return is the YC IV. If the band is expected to be called, the appropriate expected totalratum will not change V. The expected capital gains (or loss) Vield for the coming year depends on whether or not the bond is expected to be called Select

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