the first photo

eBook Problem Walk-Through Pelzer Printing Inc. has bonds outstanding with 19 years letto maturity. The bonds have a 7 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 $890.20. The capital gains yield last year was 10.98% a. What is the yield to maturity? Do not found intermediate calculations. Round your answer to two decimal places B. For the coming year, what are the expected current and capital gains yielde? (Hint: Refer to Footnote 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 yield: c. Wil the actual realized yields be equal to the expected yields ir interest rates change? If not, how wil they differ? 1. As long as promised coupon payments are made, the current veld 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 YTM 11. 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 resun, the realized return to investors should equal the YTM TIL. As rates change they will cause the end-of-year price to change and thus the realized capital gains yield to change. As a result, the realized return to investors will differ from the YTM. IV. 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 realed return to investors will differ from the YTM V. 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 8. Problem 7.13 (Price And Yiel ebook Problem Walk-Through A9% semiannual coupoond matures in 6 years. The bond has a face value of $1,000 and a current yield of 9.0164%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the defi of the current yield and to Table 7.1) Dor round intermediate calculations. Round your answer for the band's price to the nearest cent and for YTM to two decimal places Bond's price: $ YTM