Pelzer Printing inc, has bonds eutstanding wht 9 years left to matarity. The bands 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 yleld to maturity? Do not round intermediate calculations, Round your answer to two decimal places. b. For the coming yeat, what are the expected current and copital gains yields? (Hint: Refer to Footnote 6 for the definition of the current yeid and to Tabie 7.1.) Do not round intermediate calculations. Round your answers to two decimal places. Expected current vield: \% Expected capital gains yeld: c. Wil the actual realized yields be equal to the expected yields if interest rotes change? if not, how wil they differ? 1. As rates change they will cause the end-of-year price to chonge and thus the realized capital gains yield to change. As a result, the reailzed return to investors Wil differ from the YTM. 11. As long as promised coupon payments are made, the current yiela will change as a result of changing linterest rates, However, changing rates will cause the price to change and as a result, the realized return to investors will differ from the YTM. III. As long as promised coupon payments are made, the current yield wla not change as a result of changing interest rates, However, changing rates wal cause the price to change and as a resule, the realized return to investors should equal the rm. IV. As long as promised coupon payments are mode, the current yield wil change as a result of changing interest rates. However, changing rates will cause the prich to change and as a result, the realized return to investors should equal the YTM. V, As long as promised coupon payments are made, the current vield wil change as a result of changing interest rates. However, changing ntes will not cause the price to change and as a resuit, the reatzed return to investors should equat the YTM