bonds may be called in $5$ years at $109\%$ of face value $($Call price $=$$$1,090).$

a$.$ What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

b$.$ What is the yield to call if they are called in $5$ years? Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

c$.$ Which yield might investors expect to earn on these bonds? Why?

I. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM$.$

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

III. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC$.$

IV$.$ Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC$.$

to call the bonds? Do not round intermediate calculations.

In Year $-$ Select$-$