4. Problem 7.12 (Yield To Call) ebook It is now January 1, 2021, and you are considering the purchase of an outstanding bond that was issued on January 1, 2019. It has an 8% annual coupon and had a 30-year original maturity. (It matures on December 31, 2048.) There is 5 years of call protection (unta December 31, 2023), after which time it can be called at 108-that is, at 10% of pat or $1,080: Interest rates have declined since it was issued, and it is now selling at 119.12% of par, or $1,191.20. a. What is the yield to maturity? Do not round Intermediate calculations, Round your answer to two decimal places What is the yield to call? Do not round intermediate calculations, Round your answer to two decimal places D. 1 you bought this bond, which return would you actually carn? I. Investors would not expect the bonds to be called and to earn the YTM because the YTH is greater than the YTC. II. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YC II. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM TV. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM Suppose the band had been selling at a discount rather than a premium Would the yield to maturity have been the most key return, or would the yield to call have been mostly 1. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the ye II. Investors would not expect the bonds to be called and to eam the YTM because the YTM is less than the YTC II. Investors would expect the bonds to be called and to earn the YTC Decluse the VTC is greater than the YTM IV. Investors would expect the bonds to be called and to earn the YTC because the YTC less than the YTM