1-1 A firm's bonds have a maturity of 8 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 4 years at $1,044.81, and currently, sell at a price of $1,088.02. What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places.

YTM: %

YTC: %

1-2 What return should investors expect to earn on these bonds?

a- Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC.

b- Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM.

c- Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM.

d- Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC.