eBook Problem Walk Through Last year Carson Industries and a 10-year 125 ml coupon bond at its par value of $1,000. Current, the band can be called in years at a price of $1,000 and it ses $1.200. a. What are the bonds ominaield to maturity and its nominated to call? Do not run intermediate calculations. Round your answers to two decimal places YTH YTC would an investor be more likely to earn the YTM or the VTC? What is the current yield Refet to Footnote for the definition of the current yield and to be 1.1) Hound your answer to two decimal places Is this yield affected by whether the body to be called 1. If the bond is called the capital gains yield will remain the same but the current yeld will be different If the bond is called the current ved and the car and ved borbe offered III. Ir the bond is called the current and the capital gains yield remain the same but the coupon rate will be different. IV 17 the bond is called the current yield will remain the same but the capital gains yeld will be different V. If the bond is called the current yield and the capital gains yield will remain the e what the expected capital gaire ter om ved for the coming year? Use amounts calented in above requirements for calculation, reared. Not what hadded by proud owwwwwww Is this yuld dependent on whether the bond is expected to be The expected captaina (oro) e for the coming year does not depend on whether or not to be called IL. If the bond is expected to be called the appropriate treba is the YTM IT IF the bond is not eed to be the respected to return the YTC IV. If the bond is expected to be called the respected to return wirange The expected to for our vild for the coming year depends on whether this expected to be called bood at its per value of $1,000. Currently, the band can be called in years at a price of $1,060 and it sed for $1.200 What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places YTH YTC Would an investor be more they to earn the YTM or the YTC? Select b. What is the current yield? (Hint: Refer to Footnotes for the definition of the current yield and to Table 7.1) Round your answer to two decimal places Is this yield affected by whether the bond isely to be called? 1. If the bond is called the capital gains yield wit remain the same but the current yield will be different 11. If the bond is called the current yield and the capital gains yield wil both be different m. If the band is called the current yield and the capital gain yield will remain the same but the coupon rate will be different IV. If the bond is called the current yeld will remain the same but the capital gains yield will be different If the band is called the current yield and the capital gains yield will remain the same e. Wat is the expected capital gains for oss vield for the coming year? Use amounts calculated in stove requirements for calculation required. Negative thout beindicated tv anus won. Round you Is this yield dependent on whether the bond is expected to be called 1. The expected capita come cores) vied for the coming year does not depend on whether or not the bond is expected to be called 11. If the bond spected to be called, the appropriate expected to return is theYTH III. If the bond is not expected to be called the operate expected to return is the VTC IV. If the bond is expected to be called, the appropriate expected total return will not change V The expected capital gains (or ins) yield for the coming year depends on whether or not the bond is expected to be called Do not round intermediate calculations. Round your answers to two decimal places. current yield and to Table 7.1) Round your answer to two decimal places current yield will be different. be different ain the same but the coupon rate will be different gains yield will be different in the same sounts calculated in above requirements for calculation, if required. Negative value should be indicated by a minus sign. Round your answer to two decimal places end on whether or not the bond is expected to be called the YTM an is the YTC will not change whether or not the bond is expected to be called