A firm's bonds have a maturity of 10 years with a $1,000 face value, have an 8 semiannual coupon, are callable in 5 years at $1,054 80, and currently sell at a price of 51,104 71 What are their nominal yield to maturity and their nominal yleid to call Do not round intermediate calculations Round your answers to two decimal places YTM YTC 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 rTM is greater than the YTC 1I Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC III Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM IV Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM

Question

A firm's bonds have a maturity of 10 years with a $1,000 face value, have an 8  semiannual coupon, are callable in 5 years at $1,054 80, and currently sell at a price of 51,104 71  What are their nominal yield to maturity and their nominal yleid to call  Do not round intermediate calculations  Round your answers to two decimal places  YTM  YTC  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 rTM is greater than the YTC  1I  Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC  III  Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM  IV  Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM

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

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