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firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 7 years at $1,070.34,

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firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 7 years at $1,070.34, and currenty sell at a price of $1,130: What are their nominal yleld to maturity and their nominal yield to call? Do not round intermediate calculations, Roung your answers to two decimal places. What retum should investors expect to eam on these bonds? 1. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the rTc. th. Investors would expect the bonds to be called and to eam the YTC because the YTC is less than the YTM. 1II. Investors would expect the bonds to be called and to eam the YTC because the YTC is greater than the YTM. TV. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC

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