Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,060 and it sells for $1,150.

1. What are the bond's nominal yield to maturity and its nominal yield to call?

YTM:

YTC:

2. What is the current yield?

3. Is this yield affected by whether the bond is likely to be called?

-If the bond is called, the capital gains yield will remain the same but the current yield will be different.

-If the bond is called, the current yield and the capital gains yield will both be different.

-If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate will be different.

-If the bond is called, the current yield will remain the same but the capital gains yield will be different.

-If the bond is called, the current yield and the capital gains yield will remain the same.

4. What is the expected capital gains (or loss) yield for the coming year?