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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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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 $1,052.79, and currently sell at a price of $1,101.47. What are their nominal yield to maturity and their nominal vield to cali? Do not round intermediate caiculations. Round your answers to two decimal places. What return should imvestors expect to earn on these bonds? 1. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less tipan the YTC. II. Tnvestors would expect the bonds to be called and to earn the Yrc because the rTc is less than the YTM. III. Investors would expect the bonds to be called and to earn the YTc because the VTC 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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