is now January 1, 2021, and you are considering the purchase of an outstanding bond that was issued on January 1, 2019. It has an 8.5% annual coupon and had a 30 -year $1,080. Interest rates have declined since it was issued, and it is now selling at 119.57% of par, or $1,195,70. a. What is the yleid to maturity? Do not round intermediate caloulations, Round your answer to two decimal places. What is the yield to call do not round intermediate calculations, hound your answer to two decimal places. b. If you bought this bend, which return would you actualy earn? 1. Investors would not expect the bonds to be called and to eam 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 YTM is less than the YTC. 11. Investors would expect the bends to be called and to earn the YTC because the rTC is less 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 bond had been seling at a discount rather than a premium, Would the yeid to maturity have been the most likely return, or would the yield to call haven been mont likely? 1I. Inveitons wovld expect the bonds to be calied and to eam the rre because the ric is leis than the YTM. iII. Investors would not expect the bonds to be called and to eam the YTM because the YTM is greater than the VTC. IV. Investors would not expect the bonds to be called and to eam the YTM because the YTM is less than the YTC