Please answer questions below for sections A through G based on the data provided.

c. Calculate the current yield for each of the three bonds. (Hint: The expected current yield is calculated as the annual interest divided by the price of the bond.) Round your answers to two decimal places. Current yield (Bond A): Current yield (Bond B): os Eurrent yieid (Bond C ): as d. If the yield to maturity for each bond remains at 9%, what will be the price of each bond 1 year from now? Round your answers to the nearest cent. Price (Bond A): $ Price (Band B): 5 Price (Band C)=$ What is the expected capital gains yield for esch bond? What is the expocted total return for each band? found your answers to two decimal places. e. Mr. Clark is considering another bond, Bond D. It has a 7% semiannual coupon and a $1,000 face value (i.e., it pays a $35 coupon every 6 months). Bond D is scheduled to mature in 9 years and has a price of $1,140. It is also callable in 7 vears at a call price of $1,020. 1. What is the bond's nominal yield to maturity? Round your answer to two decimal places. 9 2. What is the bond's nominal yield to call? Round your answer to two decimal places. 96 3. If Mr. Clark. were to purchase this bond, would he be more likely to receive the yield to maturity or yield to call? Explain your answer. Becsuse the rTM is the YTC, Mr. Gark, expect the bond to be called. Consequently, he would earn f. Explain briefly the difference between price risk and reinvestment risk. This risk of a decline in bond values due to an increase in interest rates is called . The risk of an income decline due to a drop in interest rates is called Which of the following bonds has the most price risk? Which has the most reinvestment risk? - A 1-year bond with a 9% annual coupon - A 5-year bond with a 9% annual coupon - A 5-year bond with a zero coupon - A 10-year bond with a 9% annual coupon - A 10-year bond with a zero coupon A has the most price risk. A has the most reinvestment risk. 9. Calculate the price of each bond (A,B, and C) at the end of each year until maturity, assuming interest rates remain constant. Round your answers to the nearest cent. Yena mann.tas 1 an - Create a graph shawing the time path of cach bond's value. Chouse the correct graph. The correct greph is 1. What is the expected current yield for each bond in each year? Round your answers to two decimal places. 2. What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places. 3. What is the total return for each bond in each year? Round your answers to two decimal places. c. Calculate the current yield for each of the three bonds. (Hint: The expected current yield is calculated as the annual interest divided by the price of the bond.) Round your answers to two decimal places. Current yield (Bond A): Current yield (Bond B): os Eurrent yieid (Bond C ): as d. If the yield to maturity for each bond remains at 9%, what will be the price of each bond 1 year from now? Round your answers to the nearest cent. Price (Bond A): $ Price (Band B): 5 Price (Band C)=$ What is the expected capital gains yield for esch bond? What is the expocted total return for each band? found your answers to two decimal places. e. Mr. Clark is considering another bond, Bond D. It has a 7% semiannual coupon and a $1,000 face value (i.e., it pays a $35 coupon every 6 months). Bond D is scheduled to mature in 9 years and has a price of $1,140. It is also callable in 7 vears at a call price of $1,020. 1. What is the bond's nominal yield to maturity? Round your answer to two decimal places. 9 2. What is the bond's nominal yield to call? Round your answer to two decimal places. 96 3. If Mr. Clark. were to purchase this bond, would he be more likely to receive the yield to maturity or yield to call? Explain your answer. Becsuse the rTM is the YTC, Mr. Gark, expect the bond to be called. Consequently, he would earn f. Explain briefly the difference between price risk and reinvestment risk. This risk of a decline in bond values due to an increase in interest rates is called . The risk of an income decline due to a drop in interest rates is called Which of the following bonds has the most price risk? Which has the most reinvestment risk? - A 1-year bond with a 9% annual coupon - A 5-year bond with a 9% annual coupon - A 5-year bond with a zero coupon - A 10-year bond with a 9% annual coupon - A 10-year bond with a zero coupon A has the most price risk. A has the most reinvestment risk. 9. Calculate the price of each bond (A,B, and C) at the end of each year until maturity, assuming interest rates remain constant. Round your answers to the nearest cent. Yena mann.tas 1 an - Create a graph shawing the time path of cach bond's value. Chouse the correct graph. The correct greph is 1. What is the expected current yield for each bond in each year? Round your answers to two decimal places. 2. What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places. 3. What is the total return for each bond in each year? Round your answers to two decimal places