2. Problem 7.08 (Yield to Call) ebook Ten years ago the Templeton Company issued 17-vear bonds with a 9% annual coupon rate at their $1,000 par value. The bands had a 6% call premium, with 5 years of coll protection. Today Templeton called the bonds. a. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places b. Why the investor should or should not be happy that Templeton called them 1. Since the bonds have been called, Interest rates must have risen sufficiently such that the YCC is greater than the YIM. I investors wish to reinvest their interest receipts, they can now do so at higher interest rates II. Since the bonds have been called, Interest rate must have risen sufficiently such that the YTC in greater than the YTM. I investors wish to reinvest their Interest receipts, they must do so at lower interest rates. mm. Since the tionds have been cated, investors will receive a call premium and can declare a capital gain on their tax returns. IV. Since the bonds have been called investors will no longer need to consider reinvestment rate risk V. Since the bonds have been called, interest rates must have aber sufficiently such that the VTC is less than the YTM. If investors wish to reinvent their interest do Select