i have already posted this question answer that is on cheg is not corect kindly solve it corectly for upvote otherwise i ll five thumbs down for wrong and complete answer .. 1 what is yield matu

rity ? 2 for coming year expectes curent and capital gains ..expectred curent yiled for upcoming yeat exp

ected capital gains yield nd correct option ...i have atteached the details

elzer Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have a 9% 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 $905.35. The capital gains yield last year was 9.465%. a. 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? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1.) Do not round intermediate calculations. Round your answers to two decimal places. Expected current yield: % Expected capital gains yield: 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. However, changing rates will cause the price to change and as a result, the realized return to investors will differ from the YTM. II. 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. III. 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 should equal the YTM. IV. 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. V. As rates change they will cause the end-of-ygar 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. TABLE 7.1 Calculation of Current Yields, Capital Gains Yields, and Total Returns for 5%,8%, and 11% Coupon Bonds When the Market Rate Remains Constant at 8% - Using a financial calculator, the price of each bond is calculated by entering the data for N, INR, PMT, and FV, then solving for PV = the bond's value. "The expected current yield is calculated as the annual interest divided by the price of the bond. The expected total retum is the sum of the expected current yield and the expected capital gains yield. 'Brokerage houses occasionally report a bond's current yield, defined as the annual interest payment divided by the current price. For example, if Allied's 8% coupon bonds were selling for $981.60, the current yield would be $80/$981.60=8.15%. Unlike the YTM or YTC, the current yield does not represent the actual return that investors should expect because it does not account for the capital gain or loss that will be realized if the bond is held until it matures or is called. The current yield was popular before calculators and computers came along because it was easy to calculate. However, it can be misleading, and now it's easy enough to calculate the YTM and YTC