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It is now January 1, 2019, and you are considering the purchase of an outstanding bond that was issued on January 1,2017 . It has an 8.5% annual coupon and had a 30-year original maturity. (It matures on December 31, 2046.) There is 5 years of call protection (unti December 31, 2021), after which time it can be called at 108 that is, at 1084 & or \$1,080, Interest rates have declined since it was issued, and it is now seling at 116.57 h of par, or $1,165.70. a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. What is the yeld to call? Do not round intermediate calculations. Round your answer to two decimal places. b. If you bought this bond, which return would you actwally eam? 1. Investors would expect the bonds to be calied and to earn the YTC because the YTC is greater than the YTM. II. 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 iess than the YTC: IV. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the VTM. c. Suppose the bond had been seling at a discount rather than a premium. Would the yield to maturity have been the most likely return, or would the yield to call have bee most likely? 1. Investors would not expect the bonds to be called and to eern the VTM because the VTM is less than the VTC II. Investors would expect the bonds to be called and to earn the VTC because the YTC is greater than the VTM. III. Investors would expect the bonds to be called and to earn the YTC because the VTC is less than the YTM. IV. tnvestors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC