It is now January 1, 2021, and you are considering the purchase of an outstanding bond that was sued on January 1, 2011 original maturity (it matures on December 31, 2048.) There is 5 years of all protection (until December 31, 2023), ter which time it can be called st 100--that is, 100% of our or $1.00 Interest rates have declined non it was issued, and it is now selling at 119.57% of par, or $1,195.70 What is the yield te maturity? Do not round intermediate calculations. Round your answer to two decimal places What is the yield to call Do not round Intermediate calculations, Round your answer to two decimal place b. If you bought this bond, which return would you actually earn? 1. Investors would not expect the bonds to be called and to cam the YTM Because the YTM is greater than the YTC II. Investors would not expect the bonds to be called and to cam the YTM because the YTM Is less than theYT III. Investors would taxpect the bonds to be called and to earn the YTC because the YTC is less than the YTM IV. Investors would expect the bonds to be called and to earn the yc because the YC is greater than the YTM c. Suppose the band had been selling at a discount rather than a premium Would the yield to maturity have been the most wely retum, or would the yield to call have been most likely Investors would not expect the bonds to be called and to earn the YTH because the YTM is less than the YTC 11. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM II. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM IV. Investors would not expect the bonds to be called and to eam the YTM because the YT is greater than the YTC, Select It is now January 1, 2021, and you are considering the purchase of an outstanding bond that was sued on January 1, 2011 original maturity (it matures on December 31, 2048.) There is 5 years of all protection (until December 31, 2023), ter which time it can be called st 100--that is, 100% of our or $1.00 Interest rates have declined non it was issued, and it is now selling at 119.57% of par, or $1,195.70 What is the yield te maturity? Do not round intermediate calculations. Round your answer to two decimal places What is the yield to call Do not round Intermediate calculations, Round your answer to two decimal place b. If you bought this bond, which return would you actually earn? 1. Investors would not expect the bonds to be called and to cam the YTM Because the YTM is greater than the YTC II. Investors would not expect the bonds to be called and to cam the YTM because the YTM Is less than theYT III. Investors would taxpect the bonds to be called and to earn the YTC because the YTC is less than the YTM IV. Investors would expect the bonds to be called and to earn the yc because the YC is greater than the YTM c. Suppose the band had been selling at a discount rather than a premium Would the yield to maturity have been the most wely retum, or would the yield to call have been most likely Investors would not expect the bonds to be called and to earn the YTH because the YTM is less than the YTC 11. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM II. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM IV. Investors would not expect the bonds to be called and to eam the YTM because the YT is greater than the YTC, Select
