1. IAM Appmaths bonds currently sell at TL1,110. They have a face value of TL1,000,9% annual coupon payments, and 8 years left until maturity. The bonds are callable in 4 years at 110% of face value (call price = TL1,100). a. Find the yield to maturity. (5 Pts) b. Find the yield to call if the bonds are called at year 4. (5 Pts) c. Which yield, yield to maturity or yield to call, should investors expect to earn on these bonds, and why? (5 Pts) d. Assume that the call provision gives IAM Appmaths the right to call them at the end of each year beginning in Year-4. In Year-4, the bonds may be called at 110% of face value, but in each of the next 3 years the call percentage will decline by 1 percentage point. Thus, in Year-5 the call percentage is 109%, in Year-6 108% and in Year-7 107%. If the yield curve is horizontal and interest rates remain at their current level, when is the latest year that investors might expect the firm to call the bonds? (10 Pts)