Question $8(1$ point$)$

Hooper Printing Inc. has bonds outstanding with $12$ years left to maturity. The bonds have a $12\mathrm{.}0\%$ annual coupon rate and were issued $1$ year ago at their par value of $$1,000.$ However, due to changes in interest rates, the bond's market price has fallen to $$900\mathrm{.}00.$ The capital gains yield last year was $-10\mathrm{.}00\%.$

a$)$ What is the yield to maturity?

b$)$ For the coming year, what is the expected current yield?

c$)$ For the coming year, what is the expected capital gains yield?

a$)13\mathrm{.}75\%$; b$)12\mathrm{.}00\%$; c$)1\mathrm{.}75\%$

a$)13\mathrm{.}75\%$; b$)13\mathrm{.}33\%$; c$)0\mathrm{.}41\%$

a$)12\mathrm{.}00\%$; b$)13\mathrm{.}33\%$; c$)-1\mathrm{.}33\%$

a$)13\mathrm{.}75\%$; b$)13\mathrm{.}33\%$; c$)-0\mathrm{.}41\%$