Pelzer Printing Inc. has bonds outstanding with 9 years of to maturity. The bonds have a 5 annual coupon rate and were issued 1 year ago at the par value of $1,000. However, due to changes in interest rates, the bonds market price has fallen to $901.40. The capital gains yield last year was -2,86% a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places b. For the coming year, what is the expected current yield? (Hint: Refer to footnote 7 for the definition of the current yield and to Table 7.2.) De nok round intermediate calculations. Round your answer to two decimal places. % For the coming year, what is the expected capital gains yield? (Hint: Refer to footnote 7 for the definition of the current yield and to Table 7.2.) Do not round intermediate calculations. Round your answer to two decimal places % c. Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ? 1. As long as promised coupon payments are made, the current yield will not change as a result of changing interest rates. However changing rates will cause the price to change and as a result, the realized return to investors should equal the YTM II. As long as promised coupon payments are made, the current yield will change as a result of changing interest rate. However, changing rates will cause the price to change and as a result, the realized return to investors should equal the YIM. III. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However changing rates will not cause the price to change and as a result, the realized return to investors should equal the YTM IV. As rates change they will cause the end-of-year price to change and thus the realized capital gaina yield to charge. As a result, the realized return to investors will differ from the YTM V. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However changing rates will cause the price to change and as a result, the realized return to investors will differ from the YTM -Select