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A firm's bonds have a maturity of 10 years with o $1,000 face value, have an 8% serniannual coupan, are callable in 5 years at

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A firm's bonds have a maturity of 10 years with o $1,000 face value, have an 8% serniannual coupan, are callable in 5 years at $1,049.69, and currently sell at a price of $1,097,16. What are their nominal yield to maturity and their nominal yeld to cali? Do not round intermedate calculations. Round your answers to two decimal placiss. What return should investors expect to earn on these bonds? 1. Investors would not expect the bonds to be called and to earn the YTM because the XTM is jess than the YTC 11. Imvestors would expect the bonds to be called and to earn the ric becouse the ric is iess than the rTM. III. Investors would expect the bends to be called and to earn the YIC because the YTC is greater than the YTM. IV. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC

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