a. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to the % b. Why the investor should or should not be happy that Templeton called them. rates. rates. III. Since the bonds have been called, investors will receive a call premium and can declare a capital gain on their tax returns. IV. Since the bonds have been called, investors will no longer need to consider reinvestment rate risk