Question 5 (Total 15 marks) A firm's bonds have a maturity of 10 years with $1,000 face value, have an 8% semi- annual coupon, are callable in 5 years at $1,050, and currently sell at the price of $1,100. a) What is the nominal yield to maturity of this firm's bonds? (6 marks) b) What is the nominal yield to call of this firm's bonds? (6 marks) c) What rate of return should the investors expect to earn on these bonds? (3 marks) Answers for Question 5 a. INT-semi-an nwal coupon face value x2-8%XB,mx2-160 Ibo I 2 It KO