Current yield, capital gains yield, and yield to maturity Pelzer Printing Inc. has bonds outstanding with 9 years left to maturity The bonds have an 9% annual coupon rate and were issued 1 year ago at their par value of $1,000 However, due to changes in interest rates, the bond's market price has fallen to $910.30. The capital gains yield last year was -8.97%.
A. What is the yield to maturity? Do not round intermediate calculations
B. What is the expected current and capital gains yield? Do not round intermediate calculations.
C. Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ?