HERE IS THE PROBLEM

__. __. _ _._I..__J__. 7-18 YIELD T0 MATURITY AND YIELD TO CALL Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and aeigyrrmtpoeis. Thebondsmaybecalledinyearsat 109% offacevalue (Callprioe: a. What is the yield to maturity? b. WhatistheyieldtocalliftheyarecalledinSyears? c. Which yield might investors expect to earn on these bonds? Why? d. The bond's indent-me indicates that the all provision gives the rm the right to callthe bonds attheendofeachyearbeginninginYear5.InYear5,1ebondsmaybecalledat 109%offace value;butineachofthenext4years,thecallpercentagewilldeclineby 1%. 'I'hus,inYear6, they may be called at 108% of face value; in Year 7, they may be called at 107% of face value; andsofortththeyieldcurveishozontalandinterestratesremajnat'leircurmtlevel, wheniswlatestthatinvestorsmightexpectiermtocathebonds