A firm's bonds have a maturity of 8 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 4 years at $1,051, and currently sell at a price of $1,097.66.

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?

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 YTM is less than the YTC.

IV: Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM.

V: Investors would not expect the bonds to be called and to earn the YTM