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

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A firm's bonds have a maturity of 10 years with a $1,000 tace value, have an 8% semiannual coupon, are caliable in 5 years at $1,053.69, and currently sel at a price of 51,102.39 What are their nominal yield to maturity and their nominal yleld to call? Do not round intermediate calculations. Round your answers to two decimal places. What return should investors expect to earn on these bends? 1. Iivestors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. 11. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC III. Investors would not expect the bonds to be called and to eam the YTM because the YTM is less than the YTC TV. tavestors would expect the bonds to be called and to eam the YTC because the YTC is less than the YTM

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