Please answer for c and d. And make sure a and b is correct

Click here to read the elBlook: Bond Yields YIELD TO MATURITY AND YIELD TO CALL Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left unti n 5 years at 109% of face value (Call price-$1,090). maturity. They have an io% annual coupon payment, and their current pree is $1,170. The bonds may be called . What is the yield to maturity? Round your answer to two decimal places 7.52 % b. What is the yield to call it they are called in S years? Round your answer to two decimal places. 7.37 1% c. Which yield might investors expect to earn on these bonds? why? . Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. Il. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. III. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC IV Investors would expect the bonds to be called and to eam the YTC because the YTC is less than the YTM V. Investors would expect the bonds to be called and to ean the YTC because the YTM is less than the YTC. d. The bond's indenture indicates that the ca" provision gives the firm the n t to call the bonds at the end of each year begin ng i Year 5 nYear 5, the bonds may be called at 109% of face value; but i each of the next 4 years, the call percentage will dedine by 1%. Thus, in Year 6, they may be called at 108% of face value; in year 7. they may be called at 107% of face value; and so forth. If the yield curve is horizontal and interest rates remain at their current level, when is the latest that investors might expect the firm to call the bonds? Do not round intermedate calculations. In Year -Select