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A firm's bands have a maturity of 14 years wath a $1,000 toce value, have an 11% semiannual coupon, are calable in 7 years at

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A firm's bands have a maturity of 14 years wath a $1,000 toce value, have an 11% semiannual coupon, are calable in 7 years at $1,241.20, and cucrentiy sell at a price of YTM: ric: What return should investors expect to earn on these bonds? 1. Imestors wolid not expect the bends to be called and to earn the VTM because the VTM is less than the YTC. II. Investors would expect the bonds to be called and to earh the ric becouse the Vic is less than the VTH. III. Invertors would sopect the bonds to be called and to earn the ric becouse the ric is preater than the YTH. F. Investors would not expect the bonds to be called and to earn the YTM Because the YTM is greater than the VTC

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