c$.$ What is the expected capital gains $($or loss$)$ yield for the coming year? Use amounts

calculated in above requirements for calculation, if required. Negative value should

be indicated by a minus sign. Round your answer to two decimal places.

Is this yield dependent on whether the bond is expected to be called?

I. The expected capital gains $($or loss$)$ yield for the coming year does not depend on

whether or not the bond is expected to be called.

II$.$ If the bond is expected to be called, the appropriate expected total return is the

YTM$.$

III. If the bond is not expected to be called, the appropriate expected total return is

the YTC$.$

IV$.$ If the bond is expected to be called, the appropriate expected total return will not

change.

V$.$ The expected capital gains $($or loss$)$ yield for the coming year depends on whether

or not the bond is expected to be called. What is the current yield? $($Hint: Refer to Footnote $6$ for the definition of the current

yield and to Table $7\mathrm{.}1)$ Round your answer to two decimal places.

Is this yield affected by whether the bond is likely to be called?

I. If the bond is called, the capital gains yield will remain the same but the current

yield will be different.

II$.$ If the bond is called, the current yield and the capital gains yield will both be

different.

III. If the bond is called, the current yield and the capital gains yield will remain the

same but the coupon rate will be different.

IV$.$ If the bond is called, the current yield will remain the same but the capital gains

yield will be different.

V$.$ If the bond is called, the current yield and the capital gains yield will remain the