It is now January 1, 2021, and you are considering the purchose of an outstanding bond that was issued on January 1, 2019. It has a 9.5% annual ceupan and had a 20-Year original maturity. (It matures on December 31, 2038.) There is 5 years of call protection (unbi December 31,2023 ), after which time it can be called at 108 that is, at 105% of pac, or \$1,080. Interest rates heve declined since it was isteed, and it is now seling at 116.54% of pac, or $1,165.40. a. What is the yield to maturity? Do not reund intermediate calculations. Round your answer to two decimal places. What is the yeid to calt Do not round intermedlate calculatians. Aound your answer to two decimal places b. If you beught this bend, which retum would you actually earm? 1. investors would expect the bonds to be caled and to earn the YTC becaue the YTC is sreater than the YTM. 11. Imvecters would not expect the bonds to be called and to earn the YIM because the YIM is sreater than the YIC. 111. Investors wovid not expect the bonds to be called and to earn the YTM becaute the YTM is iess then the VTC IV. Imveiters would expect the bonds to be calied and to earn the Yrc because the Yre is loss than the YIM. c. Suppose the bond had been seiling at a diwcount rather than a premim. Weuld the yield to maturity have been the moat twely retum, or weuld the yield to cail have been most likelv? 1. Investors would net expect the bonds to be calied and to carn the YIM because the YTM is grester than the YIC. II. Investars would not expect the bonds to be called ane to carn the YTM because the YTM is less than the YTc III. Investors would expect the bonds to be called and to earn the YrC because the YTC is greater than the YIM. IV. investars would expect the bondi to be caled and to earn the rTC becavie the VTC is inss than the YTM