6. Problem 7.10 (Current Yield, Capital Gains Yield, and Yield te Maturity) Book Problem Walkthrough Peter Printing Inc. has bonds outstanding with 9 years to maturity. The bonds have a louporte and were used 1 year ago at the per le of 1,000. However due to changes in interest rates, the bond's market price has foten to 1910.30. The consultaster was.97 What is the yield to maturity Do not round Intermediate calculations found your answer to the deal places NZ b. For the coming year, what are the expected current and capital gains yet: Refer to Foote for the definition of the current vied and to 7.1.) Do Found intermediate calculations. Round your answers to the emplaces Expected current yield: Expected capital gains yield c. Will the actual realed yields be equal to the expected yields ir interest rates change? not, how will they offer 1. As long as promised coupon payments are made the current yield will change as a result of changing best res. However, thanging rate wachuse the price to change and as a result, the realized return to investors wil differ from the YTM 11. As long as promised coupon payments are made the current yield will not change as a result of changing interest rates. Howeve changing rates will cause the prior to change and as a result, the reized return to investors should equal the YTM TIL As long at promised coupon payments are made the current yield will change as a result of changing interest rates. However changing rates the one to change and as a result, the realized return to investors should waltheYT IV. As long as promised coupon payments are made the currentVield will changes result of changing interest rates. However change witte price to change and as a result, the reared return to investors should equal the YTM As rates change they will cause the end of year price to change and thus the red capitales vies to changes and returns into will differ from the YTM Grade it Now Save & Continue D