Cempton Enterprises has bonds outstanding with a $1,000 face value and 10 vears left unbt raturty. They have an 12% annual coupon payment, and theer current price is $1,180. The onds may be called in 5 years at 109% of face value (Call price $1,090 ). a. What is the yield to maturity? Do not round intertrediate calculations. Round your answer to two decimal places: % b. What is the veld to cell if they are called in 5 years? Do not round intermsediate calculations, Round your answer to two decinal places: c. Whach yeld might investors expect to earn on these bonds? Why? 1. Investors would expect the bonds to be called and to earn the YIC because the YTC is less than the YTM. 11. Investors would expect the bonds to be called and to earn the YTC because the ric is greater than the YTM. III. Investors would not expect the boniss to be called and to earn the YTM because the YTM is greater than the YIC IV. Investors would not expect the bands to be called and to earn the VIM because the YTM is less than the VTC: d. The bond's indenture indicates that the call provinion owes the furm the inght to call the bonds at the end of each year begunning in Year 5 . In Year 5 , the bonds may be called at 109% of face value, but in each of the next 4 years, the call percentage will dedinit by 1%. Thus, in Year 6 , they mar be called at 108% of face value; in Year 7 , they may be called at 107% of face value; and so forth. If the veld curve is herivontal and interest rates remain at their carrent level, when is the latest that investors mighe expect the firm to call the hands? Do not round intermediste calculations. in Year h 08: End-of:Chapter Problems - Risk and Rates of Return a. Calculate the average rate of return for each stock during the period 2014 through 2018 . Found your answers to two decimal places. Stock A: Stork B: b. Assume that someone held a portfolio cansisting of 50% of Stock A and 50% of stock 0 . What would the realied rate of return on the portfolio have been each rear? flound your answers to two deomal places. Negative values should be indicated by a minus sgn- What would the average return on the portfolio have been during this period? Round vour answer to two decimal places. % C. Calculate the standard deviation of returns for each sock and for the portfolo. Hound your answers to two decimal places. d. Calculate the coefficient of variation far each stock and for the poutelo. Round your answers to fwo decinal places