9. Problem 7.18 (Yield to Maturity and Yield to Call eBook Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is $1.170. The bonds may be called in 5 years at 109% of face value (Call price = $1,090). What is the yield to maturity? Do not round intermediate calculations. Hound your answer to two decimal places b. What is the yield to call if they are called in 5 years? Do not round Intermediate calculations, Round your answer to two decimal places c. Which yield might investors expect to eam on these bonds? Why? 1. Investors would not expect the bonds to be called and to earn the YTM because the greater than the YC 11. Investors would not expect the tonds to be called and to earn the YIM Because they is less than the YTC. III. investors would expect the bonds to be called and to earn the VIC because they is less than the YTM IV. Investors would expect the bonds to be called and to earn the YTC because the ICAs greater than the YTM d. The bond's indenture indicates that the call provision gives them the right to call the bonds at the end of each year beginning in Year 5 In Years, the bonds may be called at 109 of face value, but in each of the next years, the percentage will decline by 1% Thus, in Year, they may be called at 10% of face value in Year they may be called at 107 of face value, and so forth. If the yield curve shortzontal and interest rates remain at the current level, when is the latest that investors might expect the firm to eat the bonds? Do not round intermediate calculations In Year Sled