ist year Carson Industnes issued a 10 -year, 15% semiannual coupon bond at its par value of $1,000, Currently, the bond can be called in 6 yelirs at a ice of $1,075 and it sels for $1,270 a. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations found your answers to two decimal nlaces. YTM: YTC: Would an investor be more likely to eam the YTM or the YTC? b. What is the current yield? (Hint: fefer to footnote 6 for the definition of the current yield and to Toble 7.1) Round your answer to two decimal olaces. % 1s this yield affected by whether the bond is likely to be called? 1. If the bend is called, the capital gains yield wiff remain the same but the current yield will be different. 11. If the bond is called, the current vield and the capital gains yeld will both be different. III. If the bond is called, the current vield and the capital gains yield will remain the same tuk the coupon rate will be diferent- TV. If the bond is called, the current yield will remain the same but the capital oains yield will be different. V. If the bond is ealied, the carrent yield and the canital pains yold will renain the same. Is this yield affected by whether the bond is likely to be called? 1. If the bond is called, the capital gains yieid will remain the same but the current yield will be different. 11. If the bond is called, the current yield and the capital gains yield will both be different. III. If the bond is called, the current yield and the capital gains yieid will remain the kame but the coupon rate will be bifferent. IV. If the bond is called, the current yield will remain the same but the capital gains yield will be different. V. If the bond is called, the current yield and the capital gains yield will remain the same. c. What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for caiculation, if reauired. Negative value shoald be indicated by a minus sign. Round your answer to two decimal places. % Is this yield dependent on whether the bond is expected to be called? 1. The expected capital gains (or loss) yield for the coming year does not depend on whether or not the bond is expected to be calfed. II. If the bond is expected to be called, the appropriate expected total return is the YTM. III. If the bond is not expected to be called, the appropriate expected total return is the YrC. TV. If the bond is expected to be called, the appropriate expected total return will not change. V. The expected capital gains (or loss) yield for the coming year depends on whether or not the bond is expected to be called