$\%$

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

I. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will not cause the

price to change and as a result, the realized return to investors should equal the YTM$.$

II$.$ 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$.$

III. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will cause the price

to change and as a result, the realized return to investors will differ from the YTM$.$

IV$.$ As long as promised coupon payments are made, the current yield will not change as a result of changing interest rates. However, changing rates will cause the

price to change and as a result, the realized return to investors should equal the YTM$.$

V$.$ As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will cause the price

to change and as a result, the realized return to investors should equal the YTM$.$