Nine years ago the Templeton Company issued 15-year bonds with a 12% annual coupon rate at their $1,000 par value. The bonds had an 8% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were Called. Round your answer to two decimal places Why should or should not the investor be happy that Templeton called them? 1. Investors should be happy. Since the bonds have been called investors will receive a cal premium and can declare a capital gain on their tax returns II. Investors should be happy. Since the bonds have been called, Investors will no longer need to consider investment rate IIItriestors should not be happy since the bonds have been called, terest rate manuently such that the YT is less than the YTM. If investors wish to reinst the interest, they must do so at lower interest rates TV Investors should be happy. Since the bonds have been called, Interest rates must have sulty such that the YTC greater than the YTM. If investors wish to reinst the interest recept, they can now do so at higher interest rates