It 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 85 annual coupon and had a 30-year original maturity. (It matures on December 31, 2048.) There is 5 years of call protection (until December 31,2023 ), after which time it can be called at 106 that is, at 108% of par, or $1,080. Interest rates have declined since it was issued, and it is now selling at 119.12% of par, or $1,191.20. a. What is the yleld to 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 places. b. If you bought this bond, which return would you actually earn? 1. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. II. Investors would eigect the bonds to be called and to earn the rTC because the yTC is greater than the YTM. III. Investors would not expect the bonds to be called and to eam the rTM because the rTM is greater than the rTC. - IV. Investors would not expect the bonds to be called and to eam the YTM because the YTM is less than the rTC. ci Suppose the bond had been seling at a discount rather than a premlum. Would the yleld to maturity have been the Asiost likely return, or would the yleld to call have been most likely? I. Investors would expect the bonds to be called and to earn the YTC because the rTc 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. III. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. IV. Investors would not expect the bonds to be called and to earn the YTM because the YTM Is less than the YTC