is now January 1, 2021, and you are considering the purchase of an outstanding bond that was issued on January 1, 2019. It has a 9.5\% anneal coupon and had a 20-year ginal maturity. (It matures on December 31, 2038.) There is 5 years of call protection (unvi December 31, 2023), after which time it ean be called at 108-that is, at 108\%, of par, $1,080. Interest rates have declined since it was issued, and it is naw seling at 116.54% of par, or $1,165.40. a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. What is the yield to cail? Do not round intermediate calculatiens. Round your answer to two decimal places. b. If you bought this band, which return would you actually earn? 1. Investers would not expect the bonds to be calind and to earn the YTM because the YTM is greater than the YTC 11. Investors would not expect the bonds to be called and to earn the YTM because the VTM ia less than the YTC. III, Investors would expect the bends to be called and to earn the YTC because the YrC is iess than the YTM. IV. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. C. Suppose the hond had been seling at a discount rather than a premium, Would the yieid to maturity have been the most likely retum, or would the yield to cal have been most ikely? 1. Investors would expect the bonds to be called and to eam the VrC because the Yre is less than the YTM. 11. Investors would not expec the bonds to be called and to eam the YTM because the YTM is greater than the YrC. III. Investors would not expect the bonds to be called and to eam the YTM because the YTM is less than the YTC. IV. Investors would expect the bonds to be called and to earn the YTC because the YrC is greater than the YTM