Pelzer Printing Inc. has bonds outstanding with 9 years left to matunity. The bonds have a 9% annual coupon fate and mere issiadd 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 $910,30. The capital gains ylald fast year nas - 9.974. a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimat 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 fo fabit 7.1.) Do not round intermediate calculations. Round your answers to two decimal places. Expected current yield: Expected caplial gains yieldt c. Will the actual realired yields be equal to the expected yields if interest rates change? If not, how will ther differ? 1. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. Howtret, changing rates will not cause the price to change and as a result, the realized return to investors should equal the YrM. II. As rates change they will cause the end-of-year price to change and thus the realized capital gains yieid to change. As a result, the realired ritiurn tin. investors will differ from the VTM. III. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates mit casue the price to change and as a result, the realized return to investors will differ from the viM. IV. As long as promised coupon payments are made, the current yield will not change as a result of changing interest rates. However, changing rates wief cause the price 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 yield will change as a resuit of changing interest rates. Howtiver, changing rates wilf cause. the price to change and as a result, the realized return to investors should equal the YTM