It is now January 1, 2021, and you are considering the purchase of an outstanding bond that was issued on January 1, 2015. It has a 75% annual coupon and had a 30-year original maturity. (It matures on December 31, 2018.) There is 5 years of cell protection (until December 31, 2023). ahter which time it can be called at 108-8, at 108 of par, or 51,080. Interest rates have decined since I was issued, and it is now sing # 119.57% of per, or $2,195.70. 3. What is the yield to maturity? Do not round Intermediate calculations. Round your answer to two decimal places What is the yield to call? Do not round Intermediate calculatora. Round your answer to two decimal bloc. b. If you bought this bond, which return would you actually earn L. Investors would not expect the bonds to be called and to earn the YTM because theYTM is greater than the YC I. Investors would not expect the bonds to be called and to earn the YTH because the YTM than the YIC. II. Investors would expect the bonds to be called and to earn the VTC because the YTC is less than they 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 yield to maturity have been the more hely return, or would the yield to call have been mostly? 1. Investors would not expect the bonds to be called and to earn the YTM because the YT is less than the YTC. II. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTH. TIL Investors would expect the bonds to be called and to earn the YTC because the YTC less than the YTM IV. Investors would not expect the bonds to be called and to earn the YTM because the YTM greater than the YTC. Select- It is now January 1, 2021, and you are considering the purchase of an outstanding bond that was issued on January 1, 2015. It has a 75% annual coupon and had a 30-year original maturity. (It matures on December 31, 2018.) There is 5 years of cell protection (until December 31, 2023). ahter which time it can be called at 108-8, at 108 of par, or 51,080. Interest rates have decined since I was issued, and it is now sing # 119.57% of per, or $2,195.70. 3. What is the yield to maturity? Do not round Intermediate calculations. Round your answer to two decimal places What is the yield to call? Do not round Intermediate calculatora. Round your answer to two decimal bloc. b. If you bought this bond, which return would you actually earn L. Investors would not expect the bonds to be called and to earn the YTM because theYTM is greater than the YC I. Investors would not expect the bonds to be called and to earn the YTH because the YTM than the YIC. II. Investors would expect the bonds to be called and to earn the VTC because the YTC is less than they 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 yield to maturity have been the more hely return, or would the yield to call have been mostly? 1. Investors would not expect the bonds to be called and to earn the YTM because the YT is less than the YTC. II. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTH. TIL Investors would expect the bonds to be called and to earn the YTC because the YTC less than the YTM IV. Investors would not expect the bonds to be called and to earn the YTM because the YTM greater than the YTC. Select
