A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 7 years at $1,074.99, and currently sell at a price of $1,140.50. What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: YTC: % -Select- v % What return should incestors expect to earn on these bonds? I. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC, II. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. III. Investors would expect the bonds to be called and to earn the YTC 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.

A firm's bonds have a maturity of 14 years with a $1,000 face value, heve an 690 semiennual coupon, are callable in 7 yara at $1,074.99, and currantly sell at a price of $1,140.50. What are their nominal vield to maturity and their norrinal vieid to call? Os not round intermediate calculationa. Round your answers to two decimal places. YTM: vre: What return should il, Jestors expect to eam on these bonds? 1. Investors would not expect the bonds to be celled and to earn the YTM bechuse the Yrm is less then the YrC. II. Investors would expect the bonds to be colled and to earn the VTC because the YTC is iess than the rme. III. Investors would expect the bonds to be called and to earn the VTC because the rre is greater than the me. IV. Investors would not expect the bonds to be called and to earn the VTM because the Vrm is greater than the fre