Polzer Printing Inc. has bonds outstanding wht 9 years left to maturity, The bonds have a 9% annusl coupon rate and were issued 1 vear ago ot their par value of $1,000. However, due to changes in interest rates, the bond's market price has falien to $910.30. The capital gains vieid last year was - 8.97%. a. What is the yleld to maturity? Do not round intermediate calculations, Round your answer to two decimal places. b. For the coming year, what are the expected current and capital gains yields? (Hint: Refor to Footnote 6 for the definition of the current yield and to Table 7.1.) Do not round intermediate calculations. Round your answers to two decimal places. Expected current yield: Expected capital gains yleld: 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 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, 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 fealized return to investors will differ from the YTM. III. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates wil cause the price to change and as a result, the realized return to investors will differ from the YTM. IV. As long as promised coupon payments ore made, the current yield will not change as a result of changing interest rates. However, changing rates will couse 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 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 rTM