Seven years ago the Templeton Company issued 18-year bonde with an 11% annual coupon rate at their $1,000 per value. The bords had a 7.5 col premium with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of retum for an investor who purchased the bonds when they were stand 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? L Investors should be happy. Since the bonds have been called, Interest rates must have en ently such that the YT is greater than the YTH. Investors with to reinvest their interest receipts, they can now do so at higher interest rates 11. Investors should be happy. Since the bonds have been called, Investors will receive a call premium and can dedere a capital gain on the tax returns TIT. Tnvestors should be happy. Since the bonds have been called, Investors will no longer need to consider reinvestment rate IV. Investors should not be happy. Since the bonds have been caled, Interest rates must have falien sufficiently such that the YC is less than the YTH. It investors wish to reinvest their interest receipts, they must do so at lower interest rates