These bonds were issued at different times but each one of them had 20 years to maturity when first issued. KLXs bonds pay interest semiannually, and each bond has a par value of $1000.

Table

Bond	Price per bond	Coupon rate	Maturity year	Years to maturity
I	$ 825	3,75%	2028	5
II	$930,52	6,50%	2033	10
II	$1108,08	9,25%	2038	15

As of January 1, 2023.

Given the above information, calculate:

1. The nominal annual yield to maturity (YTM) of each bond

2. The effective annual YTM of each bond

3. The current yield of each bond

4. The expected price of each bond on January 1, 2024, assuming interest rates do not

change

5. The capital gains (losses) yield of each bond for 2023, assuming interest rates do not

change

6. The total expected return of each bond for 2023, assuming interest rates do not change

7. The interest rate risk of each bond (George has asked you tabulate and graph your

results)

8. The yield to call for bond II, assuming it can be called after 4 years at $1050.