Identify the following:

a. Yield-to-maturity the yield an investor would receive by purchasing a bond at today’s market price and holding it until its maturity date, receiving all interest coupon payments and the bond’s maturity value on schedule.

b. Current yield the portion of a bond’s yield that comes from cash interest payments.

c. Capital gains yield the portion of a bond’s yield that comes from growth (or decline it could be a capital loss) in the bond’s value.

d. Yield-to-first-call the yield an investor would receive by purchasing a bond at today’s market price and holding it until the first date on which it could be called, assuming the issuer called the bond on that date paying any remaining interest, the bond’s principal, and any required penalty for exercising the call option.

e. Holding-period yield the yield an investor actually receives from a bond incorporating the time the bond was held and the market price at which it was sold