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A firn's honds have a maturity of 14 vears with a $1,000 face value, have an 11% semiannual coupon, are callable in 7 years at

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A firn's honds have a maturity of 14 vears with a $1,000 face value, have an 11% semiannual coupon, are callable in 7 years at $1,233,81, and camenthy alliat a decirnalplaceis. What erturn should investors expect id earn on these bonds? 1. Investors would expect the bonds to be called and to earn Ihe Yrc becaus the YrC is tese than the VMM 14. Investors would expect the thands to be called and to earn the Yic because the YIC is greater thun the YIM 11. Invertor woild nat expec the bond to be called and to earn the YTM because the YTM is ureater than the YTC: IV. Investers wasl not expect the bonds to be called and to earf the YTM because the YIM is leas than the Yic

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