A firm's bonds have a maturity of 10 years with a $1,000 face value, have an...

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A firm's bonds have a maturity of 10 years with a $1,000 facevalue, have an 11% semiannual coupon, are callable in 5 years at$1,180.13, and currently sell at a price of $1,322.94. What aretheir nominal yield to maturity and their nominal yield to call? Donot round intermediate calculations. Round your answers to twodecimal places.
YTM: %
YTC: %
What return should investors expect to earn on these bonds?
Investors would expect the bonds to be called and to earn theYTC because the YTC is less than the YTM.
Investors would expect the bonds to be called and to earn theYTC because the YTC is greater than the YTM.
Investors would not expect the bonds to be called and to earnthe YTM because the YTM is greater than the YTC.
Investors would not expect the bonds to be called and to earnthe YTM because the YTM is less than the YTC.

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A firm's bonds have a maturity of 10 years with a $1,000 facevalue, have an 11% semiannual coupon, are callable in 5 years at$1,180.13, and currently sell at a price of $1,322.94. What aretheir nominal yield to maturity and their nominal yield to call? Donot round intermediate calculations. Round your answers to twodecimal places.YTM: %YTC: %What return should investors expect to earn on these bonds?Investors would expect the bonds to be called and to earn theYTC because the YTC is less than the YTM.Investors would expect the bonds to be called and to earn theYTC because the YTC is greater than the YTM.Investors would not expect the bonds to be called and to earnthe YTM because the YTM is greater than the YTC.Investors would not expect the bonds to be called and to earnthe YTM because the YTM is less than the YTC.