YIELD TO CALL It is now January 1 2016, and you are considering the purchase of an outstanding bond that was issued on January 20 It has a 9 5% annual coupon and had a vear ng al maturity. It matures on December 31, 2033. There is 5 years of call protection until December 31, 2018 after hich ti it can be all e at 109 that i at 109%, of r Interest rates have declined since it was issued, and it is now selling at 116.545% of par, or $1,165.45. a. What is the yield to maturity? Round your answer to two decimal places What is the yield to call Round your answer to two decimal places. b. If you bought this bond, which return would you actually earn? Select the correct option. I. Investors would expect the bonds to be called 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 less than the YTC. IV. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM V.Investors would expect the bonds to be called and to earn the YTC because the YTM is less than the YTC. -Select- C. Suppose the bond had been selling 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 been most likely? I. Investors would expect the bonds to be called and to earn the YTC because the YTM is less than the YTC II. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. . Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. IV. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. V.Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. Select