$14$:$38$

all $5$G

$90$

Notes

March $30,2024$ at $14$:$38$

Pelzer printing Inc. bonds outstanding with $9$ years left to maturity. The bonds have an $8\%$ annual coupon rate and were issued $1$ year ago with their par value of $$1,000.$ However, due to interest rates, the bonds market has fallen to to $$908\mathrm{.}30.$ The capital gains yield last year was $-9\mathrm{.}17\%$

A$)$ what is the yield to maturity? $($Round two decimal places$)$

B$)$ for the coming year what are the expected current and capital gain yields?

Expected current yield: $?$

Expected capital gains yield: $?$

Well, the actual realized yields be equal to the expected yields if interest rate changes, if not how will they differ?