Five years ago, XYZ Inc. issued 20-year bonds with a 12 percent annual coupon rate at their $1,000 par value. The bonds had 5 years of call protection and an 8 percent call premium. Yesterday, XYZ Inc. called the bonds.

For this problem, imagine that the investor who purchased the bonds when they were issued held them until they were called. Considering this, compute the realized rate of return. Should the investor be happy with XYZ Inc. calling the bonds? Why or why not?

**Please show any calculations used.