Hooper Printing Inc. has bonds outstanding with 24 years left to maturity. The bonds have an 12% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $920.70. The capital gains yield last year was - 7.93%.

What is the yield to maturity? Round your answer to two decimal places.

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For the coming year, what is the expected current yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places.

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For the coming year, what is the expected capital gains yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places.

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Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ?

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.

As rates change they will cause the end-of-year price to change and thus the realized capital gains yield to change. As a result, the realized return to investors will differ from the YTM.

As long as promised coupon payments are made, the current yield 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 will differ from the YTM.

As long as promised coupon payments are made, the current yield will not 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 equal the YTM.

As long as promised coupon payments are made, the current yield 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 investo

Hooper Printing Inc. has bonds outstanding with 24 years left to maturity. The bonds have an 12% annual coupon rate and were issued 1 year ago at their par val eof St ,000. However, due to changes in interest rates, the bond's market price has fallen to $920.70. The capital gans yield last year was-7.93%. a. What is the yield to matunity? Round your answer to two decimal places b. For the coming year, what is the expected current yield?(Hint: Refer to Footmote 7 for the definition of the ourrent yield and to Table 7.1.) Round your answer to two decimal places For the coming year, what is the expected capital gains yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places C. Will the actual realzed yields be equal to the expected yields id interest rates change? If not, how will they differ? t. As long as premised 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 resut, the reaized return to investors should equal the YTM IL As rates change they will cause the end-el-year price to change and thus the realzed capital gains yield to change. As a result, the realized return to investors will delfer from the YTM IIL. As long as premised coupon payments are made, the cument yield will change as a result of changing interest rates. However, changing rates will cause the price to change and as a resut, the reakzed IV. As long as promised coupon payments are made, the current yield will not change as a result of changing interest rates. However, changing rates will cause the price to change and as a resut, the reaized V. As long as premised cospon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will cause the price to change and as a resut, the reakzed return to investors will differ from the YIM return to investors should equal the YTM return to investors should equal the YTM Hooper Pri br g nc. has bonds outstanding with 24 years left to maturity. The bonds have an 12% annual coupon rate and were issued 1 year ago at ther par value of S1 000 However, due to changes in nterest rates, the bond's market price has fallen to $920.70. The capital gains yeld last year was . 7.93%. a. What is the yield to maturity? Round your answer te two decimal places b. For the coming year, what is the expected current yield? 0int: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places For the coming year, what is the expected capital gains ye I ? nt: Refer to Footnote 7 for the defntion of the current yield and to Table 7.1.) Round your answer to two decinal 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 leng as promised coupon payments are made, the current yield will change as o result of changing interest rates. However, changing rates will not cause the price to change and as a result, the realined return to ievestors should ecual the YTM IL. As rates change they will cause the end-of year price to change and thus the realized capital gains yield to change. As a result, the realized return to investons will differ from the YTM II. As long as promised coupon paynents are made, the current yield will change as a result of changing interest rates. However, changing rates will cause the price to change and as a result, the realized IV. As long as promised coupon payments are made, the current yield will not change as a result of changing interest rates, However, changing rates will cause the price to change and as a result, the realized V. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will cause the price to change and as a result, the realzed return to investors will d ffer from the YIM return to ievestors should equal the YTM return to investors should equal the YTM