Question: b. If you bought this bond, which return would you actualfy eam? select the correct option, 1. Investors would not expect the bonds to be
b. If you bought this bond, which return would you actualfy eam? select the correct option, 1. Investors would not expect the bonds to be called and to earn the YTM because the YMM is greater than the VTC. 13. Investory. woild not expect the bonds to be called and to eam the vTM because the YMM is lest than the YTC: IIt. Invertont would fixpect the bonds to the called and to eam the YTC because the Yre is less than the YTM. IV. Invertors would expect the bonds to be calied and to eam the YTC because the YTM is less than the YTC: V. Investors would expect the bonds to be calsed and to eam the VTC bectuse the YrC is greoter than the YMM. c. Suppose the bond hat been selling at a discount rather than a gremiurn. Wowid the yield to maturity have been the most akely retum, or would the yeid to call have been most likelv 1. Investors would expect the bonds to be called and to eam the YTC because the YTC is less than the YTM If. Investors would not expect the bonds to be called and to eam the YTM because the YTM is qreater than the YTC. III. Investors would not expect the bonds to be called and to eam the YTM because the YTM is less than the YTG. TV. Investors would expect the bonds to be called and to earn the YTC because the YTM is less than the YTC V. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM
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