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eBook Problem Walk Through A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon, are callable

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eBook Problem Walk Through A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 7 years at $1,228.03, and currently sell at a price of $1,392.14. What are their nominal yield to maturity and their nominal yield to callf Do not roundJntermediate calculations. Round your answers to two decimal places. YTM: % YTC: % What return should investors expect to earn on these bonds? 1. Investors would expect the bonds to be called and to earn the YTC because the YT in greater than the YTM II. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. II. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. TV. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. -Sales

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