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For the coming year, what is the expected capital gains yield? (Hint: Refer to Footnote 6 for the definition of the current yield and to
For the coming year, what is the expected capital gains yield? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1.) Do not round intermediate calculations. Round your answer to two decimal places. % c. Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ? I. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. cause the price to change and as a result, the realized return to investors should equal the YTM. not cause the price to change and as a result, the realized return to investors should equal the YTM. to investors will differ from the YTM. cause the price to change and as a result, the realized return to investors will differ from the YTM. will cause the price to change and as a result, the realized return to investors should equal the YTM
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