Click here to read the eBook Bond Yields Problem Walk-Through YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 20 years to maturity, and a 8% annual coupon and sells for $1,110. What is its yield te maturity (YTM)? Round your answer to two decimal places * 6. Assume that the yield te maturity remains constant for the next 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer Click here to read the eBook: Bond Yields YIELD TO CALL protection. Today Templeton called the bonds. Seven years ago the Templeton Company issued 16-year bonds with an 11% annual coupon rate at their s1,000 par value. The bonds had an 6% call premium with 5 years of call Computer the realized rate of return for an Investor who purchased the bonds when they were issued and hold them until they were called. Round your answer to two b. Why the investor should or should not be happy that Templeton called them. Since the bonds have been called interest rates must have risen sufficiently such that the YTC is greater than the YIM. 1 investors wish to reinvest their interest receipts, they can now do so at higher interest rates 11. Since the bonds have been called, interest intes must have risen sutniclently such that the YTC is greater than the YTM, investors with to reinvest their interest they do rates. III. Since the bonds have been called, 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 falien sufficiently such that the YTC is less than the YTM, Investors wish to reinvest their interest receipts, they must do so at lower interest rates Select