Scale eBook Problem Walk-Through 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 6 years at a price of $1,060 and it sells for $1,200 a. What are the bonds nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places YTM YTC Would an investor be more likely to cam the YTM or the YTC? b. What is the current yield? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 71) Round your answer to two decimal places Is this yield affected by whether the bond is likely to be called? L. If the bond is called, the capital gains yield will remain the same but the current yield will be different. II. If the bond is called, the current yeld and the capital gains yield will both be different II. If the bond is called, the current yield and the capital ganyield will remain the same but the coupon rate will be diferent. IV. If the bond is called, the current yield will remain the same but the capital gains yield will be different If the bond is called, the current yield and the capital gains yield will remain the same c. What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calculation, if required. Negative value should be indicated by a minus sign. Round your answer to two decimal places Is this yield dependent on whether the bond is expected to be called? I. The expected capital gains (or loss) yield for the coming year does not depend on whether or not the bond is expected to be called II. If the bond is expected to be called, the appropriate expected total return is the YTM III. If the bond is not expected to be called the propriate expected total return the VTC IV. If the bond is expected to be called, the appropriate expected to return will not change V. The expected capital gains (or loss) yield for the coming year depends on whether or not the bond is expected to be called