x ebook Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is $1,170. The bonds may be called in 5 years at 109% of face value (Call price $1,090). . What is the yield to maturity? Do not round Intermediate calculations, Round your answer to two decimal places b. What is the yield to call if they are called in 5 years? Do not round Intermediate calculations. Round your answer to two decimal places 1 Which yield might Investors expect to car on these bonds? Why? 1. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM 11. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM 111. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC IV Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC N Select d. The band's indenture indicates that the call provision gives the firm the right to call the bonds at the end of each year beginning in years. In Years, the bonds may be called at 109% of race value, but in each of the next 4 years, the call percentage will decline 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 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 round Intermediate calculations in Year Select