Attempts Average / 4 10. Problem 7.12 (Yield To Coll) eBook It is now January 1, 2018, and you are considering the purchase of an outstanding bond that was issued on January 1, 2016. It has a 8% annual coupon and had a 30-year original maturity. (It matures on December 31, 2045.) There is 5 years of call protection (until December 31, 2020), after which time it can be called at 109 that is, at 109% of par, or $1,090. Interest rates have declined since it was issued, and it is now selling at 119.12% of par, or $1,191.20 a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the yield to call? Do not round intermediate calculations. Round your answer to two decimal places. b. If you bought this bond, which return would you actually earn? Select the correct option 1. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. II. Investors would expect the bonds to be called and to eam the YTC because the YTC is less than the YTM 111. Investors would expect the bonds to be called and to cam they because the YTM is less than the YTC. IV. Investors would expect the bonds to be called and to earn the YTC because the YT is greater than the YTM V. Investors would not expect the bonds to be called and to earn the YTM because the YTH is greater than the YTC -Select- CH 321 AN 4/4/2012 O 9 0 arch