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What is the vield to call? Do not round intermediate calculations. Round your answer to two decimal places. (3) % b. If you bought this bond, which return would you actually earn? Select the correct option. 1. Investors would expect the bonds to be called and to earn the rrc because the YTc is less than the YTM. II. Investors would expect the bonds to be called and to earn the YTC because the YTM is less than the YTC. III. Investors would expect the bonds to be called and to eam the YTC because the rTc is greater than the YTM. IV. Investors would not expect the bonds to be called and to eam the YTM because the YTM is greater than the YTC. V. Investors would not expect the bonds to be called and to eam the YTM because the YTM is less than the YTC. c. Suppose the bond had been selling at a discount rather than a premium. Would the vield to maturity have been the most likely retum, or would the yield to call have been most likely? 1. Investors would not expect the bonds to be called and to earn the MTM becuuse the YTM is less than the ric. II. Investors would expect the bonds to be called and to earn the MTC because the YrM is less than the YTC. III. Investors would expect the bonds to be called and to eam the YTc because the rrc is greater than the YTM. IV. Investors would expect the bonds to be called and to eam the YTC because the YTo is less than the YIM. V. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC

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