YIELD TO MATURITY-4 A firm's bonds have a maturity of 10 years with a $1,000 face value,...

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Finance

YIELD TO MATURITY-4

A firm's bonds have a maturity of 10 years with a $1,000 facevalue, have an 8% semiannual coupon, are callable in 5 years at$1,048, and currently sell at a price of $1,092.12.

  1. What is their nominal yield to maturity? Do not roundintermediate calculations. Round your answer to two decimalplaces.

    %?
  2. What is their nominal yield to call? Do not round intermediatecalculations. Round your answer to two decimal places.

    %?
  3. What return should investors expect to earn on thesebonds?
    1. Investors would not expect the bonds to be called and to earnthe YTM because the YTM is greater than the YTC.
    2. Investors would not expect the bonds to be called and to earnthe YTM because the YTM is less than the YTC.
    3. Investors would expect the bonds to be called and to earn theYTC because the YTC is less than the YTM.
    4. Investors would expect the bonds to be called and to earn theYTC because the YTM is less than the YTC.
    5. Investors would expect the bonds to be called and to earn theYTC because the YTC is greater than the YTM.

    -Select one of them-(I),(II),(III),(IV),(V)

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YIELD TO MATURITY-4A firm's bonds have a maturity of 10 years with a $1,000 facevalue, have an 8% semiannual coupon, are callable in 5 years at$1,048, and currently sell at a price of $1,092.12.What is their nominal yield to maturity? Do not roundintermediate calculations. Round your answer to two decimalplaces.%?What is their nominal yield to call? Do not round intermediatecalculations. Round your answer to two decimal places.%?What return should investors expect to earn on thesebonds?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.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 YTM is less than the YTC.Investors would expect the bonds to be called and to earn theYTC because the YTC is greater than the YTM.-Select one of them-(I),(II),(III),(IV),(V)

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