Question 8 of 10 Check My Work (remaining) elook Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 10% annual coupon payment, and their current price is $1,175. The bonds may be called in 5 years at 109% of face value (Call price - $1,090). a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places What is the yield to call they are called in years? Do not round intermediate calculations. Round your answer to two decimal places Which yield might Investors expect to earn on these bonds? Why? Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. IL Investors would not expect the bonds to be called and to earn the YTH because the YTH is less than the YTC. IT Investors would expect the bonds to be called and to earn the YC because the VTC is less than the YTM Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM d. The band's inderturnicates that the call provision gives the firm the right to call the bonds at the end of each year beginning in Year 5. In Year 5, the bonds may be called at 100% office but lach of the next years, the call percentage will decline by 1%. Thus, in Year 6, they may be called at 108 of face value: In Year, they may be called 107 office and so forth the vied curveis 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 found intermediate calculations. Type here to search