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Please show computations in Excel formula. Last year Carson Industries issued a 10-year 12% semiannual coupon bond at its par value of $1,000. Currently, the

Please show computations in Excel formula.

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 5 years at a price of $1,072 and it currently sells as $1,275.

a. What is the bonds nominal yield to maturity and its nominal yield to call? Would an investor be more likely to earn the YTM or the YTC?

b. What is the current yield? Is the current yield affected by whether the bond is likely to be called?

c. What is the expected capital gains (or loss) yield for the coming year? Is this yield dependent on whether the bond is expected to be called? Explain your answer.

Please show computations in Excel formula.

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