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A firm's bonds have a maturty of 8 years with a $1,000 face value, hove an 11% semiannual coupon, are callabie in 4 years at

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A firm's bonds have a maturty of 8 years with a $1,000 face value, hove an 11% semiannual coupon, are callabie in 4 years at $1,143,92, and currently sell at a price of $1,263.8 What are their nominal yieid to maturity and their nominal yeid to cail? De not round intermediate calculations, Round your answers to two decimal pinces. YIM: rrc What return should investers expect to earn on these bends? 1. Investorn would not expect the bonds to be caled and to earn the YTM because the YTM is iess than the YIC. 11. Imvestors would expect the bonds to be called and to earn the YTC because the YTC is iess than the YTM. III. Investors would expect the bonds to be called and to earn the YTC because the YIC is greater than the YTM. IV. Inyestors would not expect the bonds to be called and to eam the YTM because the YTM is greater than the YIC

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