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A firm's bonds have a maturity of 12 years with a $1.000 face value, have an 11% semiannual coupon, are callable in 6 years at

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A firm's bonds have a maturity of 12 years with a $1.000 face value, have an 11% semiannual coupon, are callable in 6 years at $1.202.89, and current sell at a price of $1.356.78. What is their nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. What is their nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places. What return should investors expect to earn on these bonds? 1. Investors would expect the bonds to be called and to earn the VTC because the YTM less than the YTC. 11. Investors would expect the bonds to be caled and to eam the YC because the YT is greater than the YTM. 111. Investors would not expect the bonds to be called and to earn the YTM Because the YTM greater than the YTC. . Investors would not expect the bonds to be cald and to earn the WT because the YTM Sess than the YTC. Investors would expect the bonds to be called and to earn the YC because they less than the YTM

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