Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have a 12% annual coupon payment, and their Current price is $1,175. The bonds may be calied in 5 years at 109% of face value (Call price =$1,090 ). a. What is the yield to maturity? Do not round intermediate caiculations. Round your answer to two decimal places. os b. What is the yieid to call if they are calied in 5 years? Do not round intermediate calculations. Found your answer to two decimal places. 96 c. Which yield might investors expect to earn on these bonds? Why? 1. Investors would expect the bonds to be called and to earn the rTC because the VTC is less than the YTM. II. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater 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