Last year Carsan industries issued a 10 - e2,135 semannual coupen bond at its par value of $1,000, Currenty, the bend can be called in 6 years at a price of $1,085 and it sells for $1,270. a. What are the bonos nominal yield to maturify and its nominal yield to call? Do not round intermediete caiculations. Round vour answers to two decimat places. YTMi rre Would an inester be more likety to sars the rth or the YTC? b. What is the current yeld? (Hint: Refer to Foctoote 6 tor the sefitiben of the current yield and to table 7.1) Round veur anuwer to two decimal places. It tha yield affected by whether the band is theiy to be called? 1. If the bond is calied, the capital gains veld will remain the same bu the current vield will be differem. 11. If the bond is celed, the current yeld and the cosital pasis yield wia both be diferent. III. Ir the bend is caled, the current yyid and the capalal gains viesd wil remain the same but the coupon rate mia be determe. TV. If the bond is calles, the corrent yeld wit remain the asme the the captal gaiss velo will be dererent v. if the bond is called, the cureent yels and the capital gaine yield will remain the tame. to twis dedinat praces. Is this vield dependent on whether the bend is expected to be calies? 1. The expected capital gains (or loss) viels for the coming year does nok depend os whether or hot the bond is expected to be called. It. If the bond is expected to be caled, the aporopriste expected toeal refum is the VTH. III. If the bond is not expected to be caled, the appropriate texpected tatal return is the ric. IN. If the bond is erpected to be calles, the appropriate expected total reture na not change. v. The expected capital gains (or loss) yelid for the coming year depends on whether or not the bond is evpected to be cabled