A-Z It is now January 1, 2019, and you are considering the purchase of an outstanding bond that was issued on January 1, 2017. It has an 8% annual coupon and had a 30-year original maturity. (It matures on December 31, 2046.) There is 5 years of call protection (until December 31, 2021), after which time it can be called at 103--that is, at 108% of par, or $1,080. Interest rates have declined since it was issued, and it is now selling at 119.12% of par, or $1,191.20. 2. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the yield to call? Do not round Intermediate calculations, Round your answer to two decimal places b. If you bought this bond, which return would you actually cam? 1. Investors would not expect the bonds to be called and to eam the YTM because the YTM is less than the YTC. 11. 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 IC because the YTC 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 VIC c. Suppose the bond had been selling at a discount rather than premium. Would the yield to maturity have been the most likely return, or would the yield to call have been most likely? I. Investors would not expect the bonds to be called and to earn the YIM because the YTM is greater than the YTC. II. Investors would not expect the bonds to be called and to earn the YTH because the YTM set than the YTC. TIL Tnvestors would expect the bonds to be called and to earn the YTC because the YC greater than the YTH TV. Investors would expect the bonds to be called and to earn the YCbc the YTC Bless than the YTM