$9-4$: Bond Yields

$9-6$: Bonds with Semiannual Coupons

Current yield, capital gains yield, and yield to maturity has fallen to $$908\mathrm{.}30.$ The capital gains yield last year was $-9\mathrm{.}17\%.$

a$.$ What is the yield to maturity? Round your answer to two decimal places.

$\%$

b$.$ For the coming year, what is the expected current yield? $($Hint: Refer to Footnote $7$ for the definition of the current yield and to Table $7\mathrm{.}1.)$ Round your answer to two decimal places.

$\%$

For the coming year, what is the expected capital gains yield? $($Hint: Refer to Footnote $7$ for the definition of the current yield and to Table $7\mathrm{.}1.)$ Round your answer to two decimal places.

$\%$

c$.$ Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ? the YTM$.$ the VTM$.$ YTM$.$ the YTM$.$

$V.$ 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$.$